Trichet says monetary policy still accommodative

Speaking to the European parliament on Monday, Jean-Claude Trichet, the president of the ECB, said monetary policy was accommodative even after the recent quarter-point rate rise.

"After this decision, given the positive economic environment in the euro area, our monetary policy is still on the accommodative side," he said to the parliament's Economic and Monetary Affairs Committee.

Looking ahead, Trichet gave little to suggest that rates had peaked for this cycle: "Regarding price developments