Just because rates are at their record low of 2%, they are not precluded from going lower, Trichet says. He reiterates that the ECB’s inflation target is near 2% and it will do what is necessary to keep it near that level in the medium-term. Growth will be significantly lower than the December staff projections, he said. asked about quantitative ease, Trichet notes that the ECB has doubled its balance sheet over the last year and a half, showing it is open to the concept. he excludes nothing on that front.
EUR/USD has pulled back after triggering a few small stops when it made a fresh session high at 1.3241.
