Trichet Takes Control At The ECB

The announcement by the President of the European Central Bank, Jean-Claude Trichet, that interest rates would be raised at the next meeting of the bank’s Governing Council on December 1st,could be a defining moment in his presidency.

By pre-announcing the rate increase, which senior ECB officials call a move towards greater transparency, Trichet firmly demonstrated his leadership of the Governing Council. Press leaks by dissident members had sowed confusion in the public’s mind as to the bank’s concerns and intentions before the announcement.

Even though a consensus had emerged in the Council that a December interest rate hike would be necessary, a handful of holdouts on the ECB Governing Council – some with their own very private agendas – leaked misleading and, in one instance, clearly false information to the press in a futile attempt to thwart the increase.

To continue reading, please log in or enter your email address.

To access our archive, please log in or register now and read two articles from our archive every month for free. For unlimited access to our archive, as well as to the unrivaled analysis of PS On Point, subscribe now.

required

By proceeding, you agree to our Terms of Service and Privacy Policy, which describes the personal data we collect and how we use it.

Log in

http://prosyn.org/IrkuZrm;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.