ECB may be preparing new tightening strategy - Paul Carell

Tough talk on inflation from the European Central Bank suggests it may be considering a plan to raise official interest rates even as it keeps emergency funding support for commercial banks in crisis-hit countries.

ECB President Jean-Claude Trichet surprised markets on Thursday when, as the central bank kept its main refinancing rate at 1.0 per cent, he warned that risks to price stability in the medium term “could move to the upside”.

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