Markets underestimate ECB's inflation fears

Bets on interest rate decisions fail to take into account the seriousness of the inflation situation in the eurozone, said Axel Weber, the president of the Bundesbank who also sits on the European Central Bank's (ECB) governing council.

Inflation in the eurozone hit 3.2% in February - its highest level since the creation of the single currency.

However, comments made by Jean-Claude Trichet, the president of the central bank, after last month's rate decision indicated that the ECB had shifted

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