European Central Bank expects moderate growth in euro region

European Central Bank President Jean-Claude Trichet said economic growth and inflation in the euro region would likely remain moderate, stating: "We expect the recovery to proceed at a moderate pace, with a positive underlying momentum but also with uncertainty surrounding the outlook" (Bloomberg, 27-Sep-2010). He added that while the Bank's monetary-policy stance is "accommodative", the Governing Council considers the current interest rates "appropriate" for the inflation outlook, stating: "The rate of inflation could increase slightly in the short term but should remain moderate over the policy-relevant horizon."