Jean-Claude Trichet's comments came after the bank, as
expected, left interest rates unchanged at a record-low 1 percent for the 15th
consecutive month.
"The available economic data and survey-based
indicators suggest a strengthening in the economic activity in the second
quarter of 2010 and the available data for the third quarter are better than
expected," Trichet told a press conference.
Despite his more upbeat tone, Trichet said the bank was
"not declaring victory" - it continues to expect economic growth to
be "moderate" and "uneven" in an ongoing "environment
on uncertainty." Trichet said the second half of the year was likely to
show growth easing from the "flattering" reading expected for the
second quarter - figures are due next week.
Trichet's comments come at the end of a period when the
market concern has been on the US economy losing steam, instead of the
government debt crisis which engulfed the euro zone for much of the year.
However, Trichet said "it would be very
premature" to draw negative conclusions about the US economy at the
moment.
The euro zone's marked improvement has been most evident
in the industrial sector as exporters, particularly in Germany, reap the
benefits of a pickup in global trade.
Since the ECB last considered its rates, Europe has
published the results of stress tests on 91 banks across the continent. Only
seven failed, and many observers deemed the exercise too easy, but - in a
reflection of the brighter European outlook - fears of renewed market
turbulence proved unfounded.
Successful bond auctions by financially shaky Greece,
Portugal and Spain also have helped calm markets. The ECB has been able to
scale back several crisis measures and its emergency program to prop up bond
markets by buying the debt of troubled governments has nearly ground to a halt.
"I am quite happy that this program - which
continues - is meager," Trichet said, adding that he would offer "no
further indication" on how it will proceed in future.
Earlier Thursday, the IMF, EU and ECB said Greece has
made good progress implementing an austerity program to tackle its debt crisis
and is expected to receive the second installment of rescue loans next month.
Also Thursday, the Bank of England left its interest rate
unchanged at 0.5 percent for the 18th month.
Separately, German government data showed industrial
orders returning to strong growth in June.
Still, the outlook isn't all sunshine. Economists expect
the pace of economic growth to ease in the second half and consumers appear
reluctant to spend.
Official figures released Wednesday showed that retail
sales in the euro zone were flat on the month in June.
With inflation still tame, the ECB may want to keep rates
on hold well into next year.
