EUROPEAN CENTRAL BANK

A spike in food and oil prices has made the threat of inflation more acute, leading central banks said on Monday, but they warned tightening of policy in response will not proceed at the same pace.

An April rate increase is possible as the European Central Bank continues its mission to control inflation, ECB Executive Board member Jose Manuel Gonzalez-Paramo said in an interview published on Sunday.

Gold rose above $1,430 an ounce on Friday, while silver surged 3 percent to 31-year highs, as soaring oil prices fueled by widening clashes in Libya prompted investors to pile into safe havens.

Gold rose toward $1,425 an ounce on Friday as U.S. February payrolls data supported expectations the Federal Reserve will hold off tightening monetary policy and as unrest in North Africa continued.

The U.S. Federal Reserve is right to carry on with its cheap money policy to fight high unemployment, but policymakers must stay on guard for signs of inflation, two top Fed officials said on Thursday. Atlanta Fed President Dennis Lockhart, speaking in Tallahassee, Fla., said the Fed should stay vigilant for any rise in inflation

Gold fell nearly 1.5 percent on Thursday, snapping a four-day winning streak as indications the European Central Bank may raise interest rates to battle inflation dented bullion's investment appeal.

The European Central Bank will exercise strong vigilance over rising inflation, President Jean-Claude Trichet said on Thursday, and may raise interest rates as soon as next month.

Following are comments by European Central Bank President Jean-Claude Trichet at a news conference held after the bank's Governing Council kept interest rates at a record low of 1 percent on Thursday.

The European Central Bank may hike interest rates next month, far earlier than markets expected, though any rise would not signal a series of increases, President Jean-Claude Trichet said on Thursday.

Gold and Silver Bullion prices fell sharply London lunchtime on Thursday, bouncing 1.5% and 2.3% below this week's record Dollar highs after European Central Bank president Jean-Claude Trichet said a Eurozone rate rise is possible next month.

The European Central Bank may hike interest rates next month, far earlier than markets expected, though any rise would not signal the start of a series of increases, President Jean-Claude Trichet said on Thursday.

The European Central Bank will exercise strong vigilance over rising inflation, President Jean-Claude Trichet said on Thursday, deploying a phrase that in the past signaled a rate rise was only a month away.

The European Central Bank (ECB) held the benchmark rate at a record low of 1 percent for the 23rd consecutive month.

Gross domestic product (GDP) of the eurozone grew 0.3 percent in the last quarter of 2010, mainly boosted by exports from the region, according to the second estimates released by Eurostat on Thursday.

The chances of Portugal accepting a bailout has increased as hopes of reining in the borrowing costs of peripheral European governments have faded.

Inflation in the eurozone rose from 2.3 percent in January to 2.4 percent in February year-on-year, according to the initial estimates by Eurostat.

Manufacturing activity in the eurozone accelerated to a near 11-year high in February but input costs continued to rise, signaling inflationary pressures in the region.

Irish opposition parties started coalition talks on Monday after a resounding election win gave them the mandate to renegotiate an EU-IMF rescue deal they fear will bankrupt the former Celtic Tiger economy.

Gold rose to $1,413 an ounce in Europe on Monday as turmoil in the Middle East region lifted safe-haven buying and fueled a fresh spike in oil prices, stoking concerns over U.S. growth and knocking the dollar.

Inflation in the eurozone was lower than initially estimated in January, but it still remained above the European Central Bank’s (ECB) target.

Monetary policy makers must closely watch emerging inflation tensions to head off any decline in expectations for price stability, European Central Bank Governing Council member Mario Draghi said on Saturday.