FRANKFURT (MNI) – The Eurosystem will continue to strictly separate
monetary policy, aimed at ensuring price stability, from non-standard
measures, aimed at improving the effectiveness of the monetary policy
transmission mechanism, European Central Bank President Jean-Claude
Trichet said Monday.
“We are very attached to this separation principle,” Trichet said.
This separation is key to ensuring the central bank’s price stability
goal is met, he said.
Speaking during the inauguration ceremony for the new Bundesbank
President Jens Weidmann, Trichet warned that the “crisis is not over.”
Consequently, “the responsibilities of the private sector and public
authorities are as important as ever,” he asserted.
Trichet said that since the launch of the Eurosystem, the ECB has
been “fully faithful to our mandate of maintaining price stability over
the medium term.”
“The fact that we have been able to solidly anchor inflation
expectations in the euro area at the level consistent with price
stability” throughout challenging times “has bolstered our credibility,”
Trichet argued.
Going forward, “more than ever, the unity of the Eurosystem and the
unity of the Governing Council is of the essence,” Trichet said.
–Frankfurt bureau tel.: +49-69-720142. Email: jtreeck@marketnews.com
[TOPICS: MT$$$$,M$$CR$,MGX$$$,M$$EC$,M$X$$$]
