Credit conditions among Europe’s top banks are set to tighten meaning that the economic revival could be short lived, according to the eurozone’s top central banker.
President of the European Central Bank (ECB), Jean-Claude Trichet, said that growth in the eurozone is likely to be worse than expected, following its decision to hold interest rates at 4%.
“I can tell you that the result of the survey points to some net tightening in the banking sector. I was very clear on the position of the Governing Council of price stability being our radar screen,” claims Trichet, according to the Times.
The news follows Alistair Darling’s comments that the effects of the credit crunch were not over.