The European Central Bank will have to "continue to monitor very closely" potential risks to price stability, ECB President Jean-Claude Trichet said Thursday, indicating the central bank is inclined to raise interest rates further some months down the line. Earlier Thursday, the ECB raised the key refinancing rate to 3.50% from 3.25%, the sixth interest rate hike of 25 basis points since the central bank started its current monetary tightening cycle in December 2005. The decision reflects the "upside risks to price stability over the medium term", Trichet told reporters in Frankfurt Trichet also said the ECB has to "continue to monitor very closely" all developments so as to ensure price stability over the medium and long term.. Trichet repeatedly used the expression "monitor very closely" to flag that the ECB could hike rates again, albeit not at the next monthly governing council meeting. Speaking at the central bank's regular press conference following a governing council meeting, Trichet said that "our monetary policy continues to be accommodative" if the ECB's baseline scenario on inflation and economic growth is confirmed