ECB’s Trichet on the Wires:

• ECB Interest rates are appropriate
• Economic uncertainty still prevailing
• Inflation pressures remain contained over medium term
• Inflation expectations remain firmly anchored
• Firm anchoring of inflation expectations of ‘essense’
• ECB policy will be adjusted as appropriate
• Government council will monitor all  developments closely
• Inflation will remain at current levels
• Risks to inflation outlook titled to upside
• Domestic price pressures remain contained
• Credit data suggest turning point earlier this year
• Challenge remains to expand bank credit
• Its essential that nations pursue credible plans
• Countries must implement consolidation plans
• Any positive fiscal development must be exploited
• Major reforms needed in high-deficit countries.
• Doesn’t think U.S. is pursuing weak dollar policy

Trichet on the Wires

Trichet says we see more foreign exchange volatility.

EURUSD stays within the range as Trichet and US data dominate

ECBs Trichet to spark the fire? Comments awaited

Trichet on the Newswires

• Trichet Says:
• recovery to be damped by balance sheet adjustment
• ongoing global recovery helping euro exports
• latest data shows economic rebound in spring
• ECB to monitor developments ahead very closely
• liquidity measures will be adjusted as needed
• all non-standard measures temporary measures temporary in nature and consistent with mandate
• monetary policy will do whats needed
• will do whats needed to maintain price stability
• inflation expectations “firmly anchored”
• sees price stability to be maintained every medium term
• inflation pressures “contained” over medium term
• quarterly growth rates to be uneven
• economic recovery continued in first half of 2010
• domestic price pressures to remain low
• inflation forecasts reflect higher commodity prices
• rise in indirect taxes, administered prices upward risk
• actual m3 growth understates underlie money growth
• monthly bank loan flows are positive
• Banks should turn to markets to strengthen capital base
• welcomes EU stability facility
• says governments need to take decisive fiscal action
• fiscal vulnerability must be reduced
• sustainability of public finances must be guaranteed
• governments must take extra measures where needed
• structural reforms crucial for all euro countries
• inflation to be “moderate” amid recovery
• bond program was response to major market tensions
• inflexibly attached to price stability
• has not been fully understood by parts of public
• deposits show market not properly functioning
• there is only one ECB policy position
• asked about debt certificated says looking at all tools
• no immediate plans for debt certificated
• declines to give further details on bond purchasing
• economic outlook surrounded by uncertainty
• ECB will act according to market situation
• fixed-rate full allotment in upcoming 3 month refis
• repeats present ECB interest rates are ‘approrpriate’
• market threat promped ECB bond purchases
• 3 mth refi decision was unanimous
• Euro is ‘very credible currency’
• Euro has capacity to preserve its value
• ECB supports stronger gernance at G-20 level
• europe needs reiguours implementation of stability pact

ECB’s Trichet on the Newswires

• recent events confirmed ECB policy approach
• ECB takes decisions independently of governments
• ECB is fiercely independent
• bond purchases resolve malfunctioning of some markets
• ECB not engaged in “any form of quantitative easing”
• monetary policy stance “appropriate”
• price stability goal more important in crisis
• must ensure more resilience of financial system
• bond purchases ensure policy transmission

ECB’s Trichet on the Newswires

• Indicates bond purchase decision was not unanimous
• ECB wasn’t pressured into buying government bonds
• “overwhelming majority” backed bond-purchase plan
• sees multi-speed global recovery
• says no time for complacency on inflation risks
• term deposits one option to sterilize purchases
• sees upside inflation risks in some countries
• ECB decisions wont change monetary policy stance
• says term deposits simple effective to operate

ECB keeps rates unchanged.

Trichet to speak at 8:30 AM.

« Previous Page — Next Page »