ECB to act decisively if needed says Trichet

European Central Bank president Jean-Claude Trichet said in a letter to a member of the European Parliament that the ECB would 'act decisively' if the rise in oil prices pushed domestic prices higher.

'Even though the ECB does not react directly to the short-term or first-round effects of such shocks, it would act decisively if the increase in the price of oil was transmitted to other sectors of the economy, leading to second-round effects and/or higher inflation expectations,' Trichet wrote

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