Trichet sees downside risks to economic outlook (by Polya Lesova)
LONDON (MarketWatch) -- European Central Bank President Jean-Claude Trichet said Thursday that the pace of euro-area economic growth has decelerated in the second quarter and the risks to the economic outlook are to the downside. "We expect the euro-area economy to grow moderately subject to particularly high uncertainty and intensified downside risks," Trichet said at a press conference in Frankfurt. The ECB also lowered its euro-zone economic growth forecasts. He also said that inflation risks are broadly balanced, in contrast to last month when the ECB saw upward risks to inflation. The ECB president also said the decision to keep interest rates on hold was unanimous.