ECB monitoring price risks "very closely" - Trichet

FRANKFURT (Reuters) - The European Central Bank is monitoring price risks very closely, ECB President Jean-Claude Trichet said on Thursday, deploying the same phrase he used after the bank raised interest rates in April.

"We will continue to monitor very closely all developments with respect to upside risks to price stability," Trichet told a news conference after the bank raised interest rates by 25 basis points to 1.5 percent.

Economists said before the news conference that use of the phrase would signal a further rate rise this year. Euro zone inflation remained at 2.7 percent in June, softer than expected but well above the ECB's target of just under 2 percent.

Trichet said monetary policy remained accommodative even after Thursday's increase.

(Writing by Paul Carrel, editing by Mike Peacock)