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LONDON (MarketWatch) -- Upside inflation risks are showing signs of receding, European Central Bank President Jean-Claude Trichet said at his monthly news conference Thursday, following the rate-setting Governing Council's decision to cut the ECB's main lending rate by half a point to 3.25%. Trichet noted that inflation, while still above the ECB's annual target of near but below 2%, had declined steadily since July and could move in line with the target in 2009. He added, however, that the central bank intended to keep medium- and long-term inflation expectations "anchored in line with levels consistent with price stability."