Trichet Keeps Rate Options Open, Declines to Comment on Economy


European Central Bank President Jean- Claude Trichet kept his interest-rate options open, declining to comment on whether the financial market turmoil is undermining the European economy.

In his first public comments since the market rout began, Trichet today said the bank's governing council will wait until it meets Sept. 6 before deciding whether to carry out its plan of earlier this month to raise borrowing costs.

The lack of a clear signal may disappoint investors and suggests the bank is still monitoring how much the financial turbulence is affecting the economy.

"We will assess the risks to price stability in the medium term and we will take our decision,'' Trichet said in Budapest, failing to repeat that the bank is watching inflation with "strong vigilance.''


Bloomberg
8/27/2007 8:42:20 AM