Business

Trichet about European economic down-turn
by Barbora Misakova

The European Central Bank (ECB) is one of the world’s most important central banks, as it is tasked with administrating the monetary policy of the 16 EU member states. The current ECB President is Jean-Claude Trichet who was interviewed by Raphael Kahane about European economic down-turn. On the question why the ECB is continuing with its “wait-and-see” approach, Jean-Claude Trichet answered that decreased rates over the last period pointed on monitoring situation and exchanging views as the best way what to do right now. “We are pragmatic.” he said. The question of criticism on the ECB from political leaders for not acting fast enough to protect its economy Trichet answered that ECB has decrease rates by 200.25 business points during very short spare of time, precisely three months and that is why he thinks that “what we have to do, all of us of course, is to do exactly what is appropriate: taking into account all factors in our respectiv! e economies, taking into account the shocks that we have to cope with, taking into account these inflation expectations and again we trust that we are doing what is necessary to continue to be a good anchor of stability.” Being equally attentive and equally alert is what the “wait-and-see” approach is based on. To be close to 2 is the aim of ECB added Trichet. On the question what can the ECB or government do to get credit flowing again in the Eurozone economy Trichet answered: “We have to observe that the decisions we took in the past and also the unlimited supply of liquidity that we have decided to organize in the Euro area since a number of month have helped to pass the diminishing of our policy rates to the market rates.”

related story (sgx16365): http://www.france24.com/e! n/business-interview-jean-claude-tr...

by Barbora Misakova for SigEx Ventures (http://sigexventures.com)

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posted by Blog TechSource @ 8:32 AM