European Central Bank firm on lending rate

Published: May 19, 2008 at 10:38 AM

LONDON, May 19 (UPI) -- The European Central Bank will stick to its guns and not reduce interest rates soon, the head of the bank said Monday.

During a BBC interview, bank President Jean-Claude Trichet said Europe was experiencing "an ongoing, very serious market correction."

But, he also said cutting bank lending rates could trigger even more serious problems, the BBC reported.

Rising prices "will not last forever," he said, adding that fighting unemployment was the "legacy" of the 1970s.

The failure of banks to adopt tighter financial policies in the 1970s lead to higher wages, which then led to mass unemployment, Trichet said.

© 2008 United Press International, Inc. All Rights Reserved.
Order reprints



Additional News Stories
PSA velocity may not help detect cancer
CPR can increase survival rate
NFL: Pittsburgh 28, Denver 10
COL BKB: Syracuse 75, Albany 43
NBA: San Antonio 131, Toronto 124
Chiefs release Larry Johnson
Mavs owner would consider buying Dodgers
fark
We miss George Bush because Obama has been attacked by a vampire. Or something like that
Mount Alvernia College suspends student for shaving her head to raise money for cancer research....
Catholics discover that Scientologists are forced by Scientology to have abortions. Xenu runs for...
Douchebag cyclist runs red lights and stop signs, rides on sidewalks and roads where cyclists are...
♫ At the car wash ♫ Busted at the car wash, yeah ♫ Cops nabbed them for indecency ♫ At the...
"Liquor Store Clerk Held Up by Screwdriver." No word on what the screwdriver used for a weapon