LONDON (MNI) – European Central Bank President Jean-Claude Trichet
said Thursday that the central bank would continue to sterilise its bond
purchase operations and said that the ECB Council had been unanimous in
deciding to push ahead with a new three-month fixed rate tender.
Speaking at a press conference following the ECB’s monthly
Governing Council meeting in Frankfurt, Trichet said the Council had
been unanimous in agreeing to renew the three-month fixed rate liquidity
operation:
“On the three-month operations, I would say that we were unanimous
on this decision.”
Trichet reiterated that the ECB would continue to sterilise its
bond purchases in order to maintain money market conditions consistent
with the policy set by the central bank:
“We will withdraw all the liquidity injected. What we have done, do
is permit, help restore the functioning of monetary policy transmission.
It is appropriate to continue to do what we decided. We are sticking to
decisions taken with very important message that we are withdrawing
liquidity”.
–London Newsroom: 00442078627492; email: dthomas@marketnews.com
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