Trichet on a stability-oriented monetary policy

In a speech on 'A stability-oriented monetary policy as a necessary condition for long term growth' given on 9 December, Jean-Claude Trichet of the ECB said uncertainty over the future of the stability and growth pact could mean higher long-term interest rates.

Trichet noted in the speech "growing concern among market participants and observers" over the stance of EU governments over their fiscal rulebook. The uncertainty could mean "longer-term interest rates are likely to rise", he told a

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