The President of the European Central Bank, Jean-Claude Trichet, is speaking right now, in the wake of the bank’s decision not to increase interest rates.
Trichet warned that inflation expectations may rise in the short-term, due to a rise in commodity prices (specifically energy). He sees the potential for inflation to move above the 2% level in the short-term.
Trichet says there’s no need to raise rates yet, but perhaps this is a hint that they’re coming.
The result has been a spike in the value of the euro.