ECB press conference: Highlights of ECB President Trichet speech

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Forex News: Euro rises after Government survives late night confidence voteThe following are direct quotes from European Central Bank President Jean-Claude Trichet made at a news conference held after the bank’s Governing Council left its benchmark interest rates at 1.5 percent on Thursday.

ON INFLATION

“Inflation expectations in the euro area must remain firmly anchored. Short-term interest rates remain low (and) our monetary policy remains accommodative.”

“The information that has become available confirms our assessment that the adjustment of the cumulative monetary stance was warranted in the light of upside risks to price stability.

“Monetary liquidity remains ample and may facilitate the accommodation of price pressures.”

 

MONITORING PRICE RISKS VERY CLOSELY

“We will continue to monitor very closely all developments with respect to upside risks to price stability.”

BOND-BUYING PROGRAMME

“I never said myself that it (the bond-buying programme) was dormant. I only said that we were totally transparent on what we were doing and you were seeing yourself (in) the appropriate statement (the following) Monday what we had done in the previous days. It is an ongoing programme and we are totally transparent.

“We always discussed the SMP in these meetings. You will see what we do.”

ON GROWTH

“As expected recent economic data indicate deceleration in the pace of economic growth in the past few months following a strong growth rate in the first quarter.

“Continued moderate expansion is expected in the period ahead.”

“We will observe this slowing down in the second quarter and we will see what happens in the third quarter.

“It is true that we are experiencing a high level of uncertainty not just in the euro zone.”

ON THE DOLLAR

“A solid dollar, a dollar which is credible … is good for the U.S. and good for the rest of the world.”