BRUSSELS (MNI) – European Central Bank President Jean-Claude
Trichet said Thursday he is happy that the central bank’s government
bond-buying program is winding down, but give no indication as to when
the operations might end completely.
The ECB started buying government bonds in May in response to the
Eurozone debt crisis. But the operation was controversial, dividing the
central bank’s Governing Council.
“Since we have seen a very, very significant improvement of the
overall market situation, it is not a surprise at all that the level of
activity of that particular programme has been very meagre,” Trichet
told reporters at a press conference in Frankfurt after the Council’s
August meeting.
The ECB did not say in advance how long the programme would go on,
he reminded.
“We said we will do what is necessary, taking into account our
objective,” Trichet said. “I am of course quite happy that this program
— which continues — is meagre. If it were not meagre, it would signal
that we were in a situation that is less good than it is.”
“I have no particular complacency with the situation,” he conceded.
“We have a number of challenges ahead of us.”
“We are there to ensure steadiness, continuity, to have a sense of
direction,” he reiterated. “Our environment can go up and down. What is
expected from us is to have a sense of direction, to be steady, to be
the anchor, not only of price stability, but the overall anchor of
confidence that is necessary in Europe.”
Trichet said he was particularly happy that “we have a very solid
anchoring of inflation expectations” since “this is our primary
mandate.”
The European Central Bank left its key interest rate unchanged at
1% on Thursday.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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