ECB is more upbeat on Eurozone outlook

THE European Central Bank (ECB) did not announce any change to monetary policy yesterday and gave no indication rates would be tightened.<br /><br />The ECB acknowledged it had probably been too pessimistic in its outlook and was more upbeat about the Eurozone&rsquo;s near-term prospects.<br /><br />ECB president Jean-Claude Trichet said that in the near term, the Eurozone should continue to benefit from a recovery in exports and the stimulus. Separate purchasing managers&rsquo; data showed that Eurozone activity grew modestly in August.<br /><br />But the central bank remained cautious. Lombard Street Research&rsquo;s Gabriel Stein said Trichet was right to be dovish as &ldquo;the recovery is not strong enough to start withdrawing the monetary stimulus&rdquo;.