The European Central Bank's decision to lift its main lending rate by a quarter point to 1.25% was needed to help keep inflation expectations anchored, ECB President Jean-Claude Trichet said in his monthly news conference Thursday. Trichet said monetary policy remains "accommodative" and should continue to contribute to economic growth and job creation across the 17-nation euro zone. Trichet said the central bank would continue to monitor all developments "very closely" and that it remains crucial that rising inflation doesn't feed through to inflation expectations (MarketWatch)
