Business-Insider

The following is a Bloomberg article by Christian Vits. For the full article see:
http://www.bloomberg.com/apps/news?p...4&refer=europe

Jan. 23 (Bloomberg) -- European Central Bank President Jean- Claude Trichet said he's committed to fighting inflation even after stock markets plunged and the U.S. Federal Reserve cut interest rates to avert a recession.

``Particularly in demanding times of significant market correction and turbulences, it is the responsibility of the central bank to solidly anchor inflation expectations to avoid additional volatility,'' Trichet told the European Parliament in Brussels today.

Investors shrugged off Trichet's comments and increased bets that the ECB will be forced to follow the Fed and cut interest rates. Yields on June rate futures dropped 16 basis points to 3.72 percent. The U.S. central bank cut its benchmark rate by three quarters of a percentage point to 3.5 percent yesterday after global stock markets tumbled on concern a recession in the world's largest economy will curb global growth.

``Europe is not going to get special dispensation from a global slowdown,'' Stephen Roach, chairman of Morgan Stanley in Asia, said on a panel discussion at the World Economic Forum in Davos, Switzerland. ``Europe is not this dynamic, rapidly growing economy.''

Europe's service industries this month grew at the slowest pace in more than four years after credit tightened and the euro neared a record, an industry report showed today.
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