The European Central Bank sought to deflate market speculation that it was leaning towards an interest rate cut today by issuing a surprise statement insisting it was keeping its "wait and see" stance on rates.
Bank of France head Mr Jean-Claude Trichet, who himself had last week seemed to signal a shift in the bank's tone by saying it was no longer very worried about inflation, read the statement to reporters after a Franco-German meeting in Rouen.
The statement suggested ECB President Mr Wim Duisenberg was reasserting his claim to be the sole voice of the ECB after conflicting tones from within its 18-seat council.
But the bid to steer the ECB back "on message" sowed more confusion. Some economists said it cast doubt on whether the ECB would cut rates at its next council meeting on April 11th.
They said its unusual timing amounted to an admission by the ECB that markets had misunderstood its recent comments.
ECB watchers said the unusually-timed statement marked an attempt to set the record straight on its current stance.
In an apparent bid to justify its refusal to lower rates, even though all the world's other top banks have cut this year in the face of a global slowdown, the ECB reiterated it had the "primary objective of maintaining price stability".
It added: "It is important for economic growth that the households of the euro area can rely on price stability preserving their purchasing power, and, therefore, supporting domestic demand."