ECB dampens talk of multiple rate hikes

0 Comments | AFP, June, 2008

BRUSSELS (AFP) — European Central Bank head Jean-Claude Trichet distanced himself Wednesday from suggestions of a series of interest rate rises in the eurozone ahead of an expected 25-basis-point hike next month.

"I did not say that we would envisage a series of increases, I did not say that," Trichet told the European parliament.

"I said we could decide to move our rates by a small amount in our next meeting in order to secure the solid anchoring of price expectations."

His remarks to the Committee on Economic and Monetary Affairs of the European Parliament in Brussels came amid widespread expectations that the ECB will raise its key rate by a quarter of a point to 4.25 percent on July 3.

The bank finds itself battling eurozone inflation, which hit...