The head of the European Central Bank has warned the credit crunch is set to continue and there is no evidence that the worst was over. Jean-Claude Trichet said the economy was seeing "an ongoing, very serious market correction," during an interview with the BBC. And he warned if central banks cut interest rates now, more serious problems could follow. He compared recent rises in energy and food prices to the 1970s oil shock. Trichet said the failure of most European economies to digest tighter monetary policy in the 1970s caused higher wages that undermined the region's ability to compete. The net result was mass unemployment. While the Consumer Prices Index (CPI) has risen sharply, high inflation "will not last forever," said Mr Trichet. The ECB has kept interest rates at 4% as a result of continuing inflationary pressures, even amid an economic slowdown, and Mr Trichet implied that a cut in interest rates was not on the cards. His sentiments echo that of Mervyn King from the Bank of England last week who remarked the 'nice' decade was over.