European Central Bank President Jean-Claude
Trichet on Tuesday used a key code to signal an impending rise in the benchmark
interest rate when the ECB's governing board will meet next week.
"You know as far as we are concerned,
the governing council of the ECB, that we are in a very strong vigilance mode,"
Trichet told a news conference held in Amsterdam with Korea's central bank
The ECB president had used the code "strong
vigilance" at the June 9 meeting of the governing council that had set the
stage for a July rate increase of 0.25% to 1.50%.
On Monday, the ECB's German executive board
member, Jürgen Stark, said the central bank was ready to raise interest rates
for a second time.
"We are very vigilant," Stark said in a speech in Hamburg. "We are ready not to leave the interest-rate increase from April
stand by itself."
The consumer price index for Germany is expected
to rise by 2.3% in June 2011 compared with June 2010, according to Destatis, the
federal statistics office. The CPI is expected rise 0.1% on May 2011.
Eurozone annual inflation was 2.7% in May
compared with the ECB's 2.0% target.
In Amsterdam, when asked about the French
proposal to roll over some Greek debt, Trichet told reporters the ECB was
looking at this but added: "It is the responsibility of
the governments ... it is being examined, there are several proposals that are
being examined. We will see when we have the results of this examination but
again we are observing what's going on."