EOB left the interest rate unchanged in June
09 June 2011
The European Central Bank signalled a July interest rate rise and raised the stakes in its stand-off with governments over a new bailout for Greece by rejecting any form of debt restructure. ECB President Jean-Claude Trichet said the bank would exercise "strong vigilance" on inflationary pressures, deploying a phrase that has consistently been used in the past to signal a hike was a month away. "On balance risks to the outlook for price stability are on the upside, accordingly strong vigilance is warranted. On the basis of our assessment we will act in a firm and timely manner," Trichet told a news conference after the ECB kept its main refinancing rate at 1.25 percent. Beyond July, Trichet left the ECB's options open, saying: "We are not signalling any particular pace for the next decisions on our interest rates."