Inflation to force ECB rate hike

Frankfurt: Jean-Claude Trichet is bypassing the European Central Bank’s little-known secondary mandate as inflation propels policymakers toward the first interest rate hike in three years.

While the ECB president signalled on March 3 that he may have no choice other than to tighten monetary policy, the bank’s statutes hand officials leeway to pursue policies supporting economic growth.

The Maastricht Treaty says the central bank can keep rates low if policy makers judge that price stability is guaranteed.