2 May 2001, 10:48 Trichet calls for close examination of March M3
NEW YORK (AFX) - March M3 growth in the eurozone "must be examined
very closely" according to Jean-Claude Trichet, governor of the Bank of
France.
Trichet, who is also a member of the board of governors of the
European Central bank, said that the monetary measures of the eurozone
have recently shown, "a progressive decline in the M3 growth rate which
suggests the risks against price stability were more stable than
previously thought."
But, "bearing this in mind, the latest figures published on Monday
must be examined very closely," he stressed, speaking at a conference
at New York University.
The M3 growth rate increased in March, reaching 5 pct after 4.7 pct
in February, according to the BCE figures released on Monday and is
ahead of the 4.5 pct target set by the BCE.
Noting the slowdown in demand provoked by the rapid slowdown in the
U.S. economy, Trichet said there are "numerous areas needing continued
vigilence."
He said, in particular, "the growth in salaries and the need to
avoid secondary effects which could be provoked by current inflationary
pressures of rising petrol prices and a weak euro."
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