The former president of the European Central Bank (ECB) Jean-Claude Trichet provided insights into the ECB's recent monetary policy and the ongoing economic challenges during an interview with China Global Television Network (CGTN) on the sidelines of the three-day Bund Summit which opened in Shanghai on Thursday.
Trichet praised the ECB's decisive actions in addressing the surge in inflation in the Eurozone that dropped from over 9 percent two years ago to 2.2 percent this August.
"First of all, I think really that the ECB did its own work and job quite well, obviously, because we had a surge of inflation in Europe and as well as in the world, at least in the U.S. and in many, many countries, which was very dramatic. The central banks and the ECB in particular did not practice benign neglect. They took seriously the problem, and after perhaps a small number of months of hesitation, they decided to cope with the situation and they increased rates 10 times, successively 10 times, which of course they had never done before. By the way, at the same time, the U.S. Fed was increasing interest rates 11 times. So in both cases, I would say the central banks have been very responsible," he said.
Despite the reduction in headline inflation, Trichet acknowledged the persistence of core inflation which dropped slightly from 2.9 percent in July to 2.8 percent in August. Looking ahead, he anticipated that the ECB might continue to adjust interest rates cautiously, aligning with market expectations.
"I would say at the present moment, when I look at the situation of the European, they are, as well as other central banks, on their way to have a soft landing. I expect them to continue to diminish rates, probably next time this month, we will see. I don't want to substitute to the governing council. They will take a good decision, I'm sure, but it's largely anticipated by markets," Trichet said.
Former ECB chief provides insights into EU monetary policy
Truck drivers and their cargoes sought refuge in a Shanghai activity hub as Typhoon Bebinca, the strongest typhoon to hit the city in decades, made landfall on Monday morning, unleashing heavy rains and winds exceeding 160 kilometers per hour.
In the Pudong District, situated on the southeastern tip of Shanghai, the impact of Typhoon Bebinca was stark, with trees and road signs uprooted, construction sites disrupted, and bicycles scattered across the ground.
Shanghai is not prone to strong typhoons, but local authorities have made emergency plans.
In Lingang Special Area, an activity hub was transformed into a temporary shelter for over 130 truck drivers and their cargoes.
"With such strong winds, it's not safe to park my truck on the street. Trees could fall. Parking here is a safer choice. The service is good here. It's clean, and it also provides food. We can take a shower here," said Wang Shaodong, a truck driver from east China's Anhui Province.
"The Donghai Bridge has been closed, as the typhoon is approaching. That's why we came here. They provide us with bedding, and air conditioners were turned on. So we are staying here. There are also meals downstairs," said Gong Xiangge, a hazardous cargo driver from east China's Shandong Province.
"We call these truck drivers 'men living on wheels.' The 13th typhoon [of this year] brought gales, with maximum wind speed reaching 36.9 meters per second, so danger may come at any time. So staying on the side of the street is unsafe for both trucks and drivers," said Fan Jianrong, deputy director of Lingang Special Area Investment Holding Group.
Although traffic resumed on all roads and bridges across Shanghai starting from 20:00 on Monday, precautions are still in place as Typhoon Pulasan, the 14th of the year, has formed in the northeastern Pacific and could follow a similar path to Typhoon Bebinca.
The director of the center said that the shelter remains open to those in need, ensuring that assistance is readily available for individuals affected by the poor weather.
Truck drivers seek shelter as powerful typhoon hits Shanghai
