european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank and mr lucas papademos, vice - president of the european central bank, frankfurt am main, 6 june 2007. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to today ’ s press conference. let me report on the outcome of our meeting, which was also attended by the president of the eurogroup, prime minister juncker, and commissioner almunia. at today ’ s meeting, we decided to raise the key ecb interest rates by 25 basis points. this decision was taken in view of the prevailing upside risks to price stability over the medium term that we have identified through both our economic and monetary analyses. today ’ s decision will contribute to ensuring that medium to longer - term inflation expectations in the euro area remain solidly anchored at levels consistent with price stability. such anchoring is a prerequisite for monetary policy to make an ongoing contribution towards fostering sustainable economic growth and job creation in the euro area. after today ’ s increase, given the positive economic environment in the euro area, our monetary policy is still on the accommodative side, with overall financing conditions favourable, money and credit growth vigorous, and liquidity in the euro area ample. looking ahead, acting in a firm and timely manner to ensure price stability in the medium term is warranted. the governing council will monitor closely all developments to ensure that risks to price stability over the medium term do not materialise. allow me to explain our assessment in greater detail, starting with the economic analysis. incoming information clearly confirms that the euro area economy continues to expand at a pace which is significantly stronger than generally expected a year ago. with a quarter - on - quarter rate of 0. 6 %, real gdp growth in the first quarter of 2007 was again somewhat above previous expectations. other available information on economic activity, notably various surveys of business and consumer confidence, suggests that solid growth has continued into the second quarter. looking ahead, the medium - term outlook for economic activity remains favourable. the conditions are in place for the euro area economy to continue to grow at a sustained rate. as regards the external environment, global economic growth has become more balanced across regions and, while moderating somewhat, remains robust. external conditions thus continue to provide support for euro area exports. domestic demand in the euro area is also expected to maintain its relatively strong

cross - thinking spanning regulatory domains and national boundaries. with its own independent board comprising eminent members from industry and academia, i am sure rbih is perfectly positioned to facilitate convergence of ideas among various stakeholders. while fostering innovation, however, the underlying focus of rbih should always be to promote access to financial services and products for the low - income population in the country. it should be our duty to promote such innovation that not only improves process efficiencies but also transforms the society. the overall focus, i feel, should be on innovation with a purpose. 6. i am happy to hear that to begin with, the hub has plans of identifying and mentoring start - ups having maximum potential. i wish and hope that the hub strives to nurture multiple indigenous ideas in the short to medium term, each of which can positively impact one or more segments of our financial ecosystem. the hub is also expected to collaborate with various government ministries / departments / academia to identify problem statements in different domains and explore potential solutions. to become a hub in true sense, rbih should serve as a focal point for interaction among various stakeholders. it should become the epicentre for promotion and exchange of views and knowledge - sharing, while also remaining focused on delivering clear cut 1 / 2 bis central bankers'speeches objectives within reasonable timelines. 7. rbih should aim to establish itself as a respected innovation and incubation centre, and showcase india ’ s commitment to openness of ideas, resolve to innovate, with underlying concern for inclusive growth. i am confident that rbih shall facilitate making our financial sector more agile, participative and robust. 8. with these words, i am delighted to inaugurate the rbih and wish it all success. the expectations are high and the hub will be guided by public interest. it has the potential to touch the lives of every citizen by facilitating innovations with high social impact. the hub, i am sure, will emerge as a significant player in india ’ s journey of inclusive growth. 1 national bank for agriculture and rural development ( nabard ) ; the clearing corporation of india limited ( ccil ) ; national payments corporation of india ( npci ) ; institute for development and research in banking technology ( idrbt ) ; indira gandhi institute of development research ( igidr ) ; reserve bank information technology pvt. ltd ( rebit ) 2 / 2 bis central bankers'speeches