Brussels, 11/06/2004 (Agence Europe) - Criticism from several member states' governments (notably Silvio Berlusconi: see EUROPE of yesterday, p.14) towards the European Central Bank's policy, which, they believe, favours price stability to the detriment of growth, was yesterday refuted by the governor of the Banque de France and former vice-president of the ECB, Christian Noyer. Presenting the Banque de France's annual report on Thursday, Mr Noyer, quoted by AFP, said that "the target of 2% inflation in the euro zone seems appropriate" and "that growth and price stability are not mutually exclusive".
At the same time, the Bank of England decided to raise its interest rates by 25 base points to 4.5% to combat inflation pressures attributed to the rise in house prices and the record levels of household debt in the UK.
The ECB will make its intentions for interest rates in the euro zone public at the next meeting of the Council of Governors on 1 July.