ECB Monthly Bulletin, July 2006

The European Central Bank published its July 2006 Monthly Bulletin on Thursday 13 July. In the report the ECB said it is exercising strong vigilance on inflation risks and expects interest rates to rise progressively if the euro zone economy continues to recover.

'The governing council will exercise strong vigilance so as to ensure that risks to price stability over the medium term do not materialise,' the ECB said in its July monthly bulletin.

'If the governing council's assumptions and baseline

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