BRATISLAVA, Jan 8 (Reuters) - Keeping inflation expectations firmly anchored is always a priority for the European Central Bank, ECB President Jean-Claude Trichet said on Thursday.
In an interview with state Slovak Radio, Trichet also said Europe and all economies around the world were facing demanding circumstances.
He declined to make any comment on the interest rate outlook ahead of the Jan. 15 ECB policy meeting, when analysts expect the central bank to cut rates by 50 basis points from the current 2.5 percent. [ECB/INT]
Asked if the ECB was still concerned about price stability, Trichet said: "Nothing that I say should be interpreted in terms of future monetary policy."
"What's important for any time, in any circumstance, is to solidly anchor inflation expectations in line with our definition of price stability. It was true yesterday, it is true today, it will be true tomorrow."
Euro zone inflation fell to 1.6 percent in December, below the ECB's goal of below but close to 2 percent, as the economy in the now 16-nation region deteriorates.
Trichet, in Bratislava for celebrations to mark Slovakia's entry to the euro zone, said the bloc was not alone.
"All economies .... have to cope with circumstances that are demanding," he told state Slovak Radio.
"It calls for authorities and private sector entities to live up to their responsibilities." For Slovakia, it was important to maintain sound fiscal policy in line with the stability and growth pact, and pursue structural reforms.
For all countries, it was important to use the room to move included in the European Union budget rules, but only this room.
"We are recommending to utilise the room for manoeuvring which exists in the stability and growth pact, all the room for manoeuvring, but nothing but the room for manoeuvring."
On whether the euro was in danger given increased government spending, he said: "We will take care of the currency, there is no problem." (Reporting by Krista Hughes; Editing by Ron Askew)