European Central Bank (ECB) chief Jean-Claude Trichet has rebuked criticism of the bank's interest rate policy, saying it would safeguard price stability in the eurozone in the long term. Speaking at a conference in Vienna hosted by Austria's central bank, Trichet said safeguarding price stability was and remained a necessary condition for economic growth and the creation of jobs. Trichet described the current economic enviroment as "very challenging" but said he was convinced that the Eurosystem would meet those challenges thanks to its monetary policy.
Other leading central banks such as the US Federal Reserve and the Bank of England have cut borrowing costs to ward off an economic slump. But the ECB has held its interest rates steady at four percent in face of record inflation in the 15-country eurozone.
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