The European Central Bank maintained the main refinancing operations (fixed rate) at 1.00%, and signaled interest rate increases as inflation creeps past the 2.00% ceiling of the official inflation target. The Bank noted: "analysis indicates that risks to the outlook for price developments are on the upside". Annual inflation rose to 2.4% in February 2011 according to a preliminary estimate from Eurostat. Warning of potential tightening the Bank also said: "Strong vigilance is warranted with a view to containing upside risks to price stability. Overall, the Governing Council remains prepared to act in a firm and timely manner to ensure that upside risks to price stability over the medium term do not materialise."
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