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ECB should discuss inflation disparities

The divergence between actual eurozone inflation and that perceived by the public in a number of euro area countries represents a communication challenge for the European Central Bank, says Lucas Papademos, the vice-president.

ECB ready to act as inflation stays high

Jean-Claude Trichet, the president of the European Central Bank (ECB), said on Saturday that the rate-setting governing council was ready to act to control rising prices after figures published Friday showed euro-area inflation stayed at 3.1%.

ECB could hike rates, says Orphanides

The European Central Bank's rate-setting governing council will not rule out raising interest rates, Athanasios Orphanides, a member of the council and governor of the Central Bank of Cyprus, said on Thursday.

Interbank rates edge down again

Money market tensions eased further on Friday, signalling that the joint action announced by five of the most powerful central banks last week is having some impact in narrowing spreads between interbank and central banks' benchmark rates.

EU and China agree measures on "severe" movements

A meeting between Jean-Claude Trichet, the president of the European Central Bank, and his Chinese counterpart, Zhou Xiaochuan, has resulted in the People's Bank of China saying it will co-operate with the EU to avoid "severe" fluctuations in exchange…

Koruna's rise presents mixed blessing

Ludek Niedermayer, a vice governor of the Czech National Bank, parried calls for the central bank to act on the appreciation of the koruna and said that the increase in the currency's value made euro accession more favourable.

Spain's Ordoez upbeat on eurozone growth

Sound fundamentals and robust global growth should support relatively favourable medium-term economic conditions in the eurozone, says Miguel Fernandez Ordoez, the governor of the Bank of Spain.

The only way is down

Avinash Persaud, the chairman of Intelligence Capital, a financial advisory firm, predicts the dollar will drop to $1.70 against the euro and $2.20 against sterling before central banks intervene.

Dollar hits new low on back of Chinese comments

Sterling and the euro reached record highs against the dollar on Wednesday after a senior Chinese official said the government should diversify its foreign exchange reserves by swapping dollars for stronger currencies.

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