Trichet defends summer rate hike
The European Central Bank (ECB) was right to raise rates by a quarter point in July as long-term inflation expectations threatened to become unanchored, Jean-Claude Trichet, the president of the European Central Bank, has said.
The ECB has faced criticism for its decision to raise rates in the summer and has had to cut rates by 175 basis points since October 2008. However, when asked by an interviewer in late December if he would now regard the cut as a mistake, Trichet responded: "The modest
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