From Times Online
May 19, 2008

Jean Claude Trichet warns of 'very significant market correction'

Miles Costello

Fears of a sustained downturn in world economies was back on the agenda today after Jean Claude Trichet, the president of the European Central Bank, gave warning that the worst of the credit crunch has not passed and the economy was still heading for a "very significant market correction".

Mr Trichet, who has fiercely resisted following other policymakers by making interest rate cuts, insisted in an interview today that acting to restrain rampant inflationary growth was the best way to ensure stability and job security.

Mr Trichet told the BBC: “Price stability and credibility in price stability in the medium term is the best way to have a high level of sustainable growth and sustainable job creation.â€