The European Central Bank has raised its key interest rate to 2.5%, in response to a strengthening eurozone economy and fears of growing inflation.
Mr Trichet has said the bank will be "vigilant" on inflation
The quarter-point rise from 2.25% is the second in four months, after the bank had held rates steady at 2% for more than two years.
Last month, ECB President Jean-Claude Trichet said the bank would remain "vigilant" on inflationary pressures.
He said the ECB had to ensure economic growth did not affect price stability.
Persistently high oil prices have posed the most significant threat to inflation.
The eurozone's economic outlook for 2006 is mixed, but some of its largest economies, including France and Germany, are expected to gain momentum, with reports indicating that business and consumer confidence is running high.
In its last forecast the ECB predicted economic growth of 1.9% across the 12-member eurozone bloc in 2006, compared with 1.4% last year.
Many investors and analysts expect the bank to raise the key interest rate again this year, especially as rates in the US and other regions are much higher.
But there are still concerns that raising eurozone rates too soon, or too aggressively, could hamper Europe's economic recovery just as it is gathering momentum.