Trichet - European Economy Fundamentals are good and Euro Zone experiencing growth that is ongoing - by Chris Malpass
European Central Bank President Jean- Claude Trichet said on the euro-area economy: ``Fundamentals are good. We are experiencing growth that is ongoing. We have the influence of the financial turbulence, and uncertainty has to be taken into account. By solidly anchoring inflationary expectation we contribute to the stability of financial markets. We looked at the situation as a whole, we decided that 4 percent is the level that will permit us in this multidimensional situation to deliver price stability in the medium term. Inside the governing council we had no calls for an increase of rates, but equally no calls for cutting the rates.
When asked on whether the ECB should follow the U.S. Federal Reserve and cut rates Trichet said: ``The first observation is that our economic fundamentals are sound and we think we have an ongoing growth that is significant, even if the risks lie on the downside. We all stick to our own responsibilities. The Bank of England and U.S. Fed have their own responsibility. Both sides of the Atlantic are not in the same situation.
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