High oil prices pose risk to the economy, says Trichet

The sharp rise in oil prices poses a risk to the global economy unless producing countries live up to their responsibilities, European Central Bank president Jean-Claude Trichet warned.

In an interview with the Financial Times ahead of this weekend's G7 meeting, Trichet described rising energy prices as a "highly unwelcome phenomenon" for growth and inflation control.

In what the paper sees as a thinly-veiled criticism of OPEC, which has cut its supply ceiling to support prices, he urges the oil cartel to be "fully up to its responsibility", adding: "We all have a stake in global prosperity."

Trichet also said the ECB is keeping the door open for a further interest rate cut if needed to bolster continental Europe's stuttering upturn.