Sarkozy wonders whether European rates 'reasonable' at 4.25%
Posted: 06 July 2008 0733 hrs

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PARIS : French President Nicolas Sarkozy on Saturday questioned the European Central Bank's decision to hike interest rates by a quarter point to 4.25 per cent, asking at a ruling party meeting whether it was "reasonable."

The ECB lifted its main interest rate on Thursday to a seven-year high of 4.25 per cent in hope of putting a lid on record inflation.

"I was among those who voted for independence of the ECB, I don't regret it," Sarkozy told the meeting of his UMP in Paris.

"I was among those who voted for independence of the euro, I don't regret that," the head of state went on.

"But all the same, without compromising everything I believe in, I have the right as president of the French republic to wonder if it is reasonable to raise the European rates to 4.25 per cent while the Americans have rates of 2.0 per cent," Sarkozy said.

At the UMP national council meeting, with a European theme, Sarkozy was to present the priorities of the French presidency of the EU which kicked off on July 1.

- AFP/vm