FRANKFURT (MNI) – The euro is a credible currency and not in
danger, ECB President Jean-Claude Trichet said in an interview with
Germany’s Frankfurter Allgemeine Zeitung released Friday.
“The euro is a credible currency whose inflation rate has been
below 2% for more than eleven years,” Trichet said. “The euro is not in
danger.”
Asked about recent forex intervention rumors after the single
currency’s sharp decline, Trichet said: “I never comment on
interventions.”
The bank’s recent moves to purchase government bonds does not
represent a change in the bank’s monetary policy stance, he said,
assuring that it would drain the additional liquidity that it has
channeled into the financial system through the bond buys.
“We have full freedom of action and will never shy away from
observing our responsibility to preserve medium-term price stability,
also under difficult circumstances,” he said.
The central bank is not letting governments or any other groups
pressure it into acting a certain way, the ECB president said.
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–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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