Trichet testimony: Oil price to dampen growth

In testimony to the European Parliament given on 30 November Jean-Claude Trichet of the ECB signalled that the bank is likely to lower its forecast for 2005 economic growth in the euro zone as the increase in oil prices impacts on consumer spending and investment.

"The outlook for economic activity, both globally and domestically, continues to be surrounded by uncertainties," Trichet said. The outlook for growth and inflation hasn't "led us to think that it is right to change our monetary policy

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