Beyond that a slowdown should see the day

The Board of Governors of the European Central Bank (ECB) noted yesterday at the end of its meeting in Frankfurt, the euro area, by a quarter-point rate. The main landmark in European monetary policy is therefore now at 3. This fourth inflation of the rent of money to the day since December 1 to motive, mainly, by the risks associated with the increase of consumer prices in the euro area. The President of the institut d ' émission, Jean-Claude indicated Trichet, even in 2006 and 2007 the rate of inflation would remain above the 2 medium-term objective is assigned the ECB.

This decision, "an overwhelming majority", "reflects the growing risks for the stability of the price that we identified, on the basis of our economic and monetary analyses", said the President before adding that monetary policy "remains accommodative. Also, if the core of the Central Bank scenario is true in the coming weeks, further interest rate rises will intervene.

On this plan, Jean-Claude Trichet refused to give an any specific timetable. If recovery continues, it will be "necessary to gradually reduce the character accommodating monetary policy." "Our decisions are not predetermined ...". There is no rhythm of two months or three months pace. We will do what we deem appropriate. "But, for the ECB, there is no doubt that economic growth increases. "Activity starting also to be more widely supported by domestic demand," said Jean-Claude Trichet.

In an unusual manner, the gesture of the ECB has been praised by a politician. Germany, the Minister of the economy, Michael Glos, found that "the increase in the rate of the ECB reflects the strengthening of the economy." His eyes, "the stable trend of the situation is not yet threatened." But the ECB will have to "keep in memory in its decisions the fact that the rise in inflation primarily to temporarily high energy prices". Or even.

"Geopolitical tensions".

The arms of iron between the Iran to the international community on the nuclear file and the conflict in the Lebanon between Israel and Hezbollah are all uncertainties as to the conduct of European monetary policy. What recalled Jean-Claude Trichet in holding that "recent geopolitical tensions and their impact on the market remind us the uncertainties we face". Evocation, by Iranian officials, of a barrel of oil at $ 200 for United Nations sanctions against the Iran, if the hypothesis is check, would call into question the strategy of different international central banks involved in a monetary tightening cycle. But for the time being, the continuation of the movement is subject to confirmation of the resumption. For economists, it is acquired in the second half the growth in the euro zone should remain firm, especially in the last quarter of the result of the impact of the German economy. The increase of VAT in January 1 should encourage German households to make their purchases. Beyond that, a slowdown should see the day. As the American locomotive begins to show signs of less dynamism. Also, the potential for increase in rates in the euro area appears to be limited to a half or a quarter of a point. Unless that European Governments, the implementation of structural reforms, are able to increase the growth potential of the area, currently estimated at 2. Half of that of the United States.