Needless to say, this is one of the most hyped ECB press conferences in ages, as everyone is wondering whether Trichet will step up to defend the future of the Eurozone.
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8:33: Trichet talking generally about improving European economy in prepared remarks.
8:34: Current monetary stance remains accommodative. Same with the liquidity stance. That includes maintaining full liquidity for banks, though nothing new on that front. No new bond purchases announced.
8:36: Still just talking generalities, and not the recent acute issues.
8:40: Talking risks (banks, fiscal consolidation). Nothing you haven’t heard before.
8:46: Really generic non-event stuff… the good stuff might come in the Q&A.
8:50: Q&A… Clarifying his stance. Liquidity maintained.
“Our non-standard measures are there to transmit appropriate transmission of the monetary policy stance.”
Question: Would you still describe government bond buying as temporary?
YES. Bond buying IS temporary… because they are abnormal.
Question on Ireland: Was assistance plan in best interest of Ireland, or best interest of everyone else within the Eurozone.
Trichet: Of course this was done with the best interest of Ireland..
Trichet goes on.., confirming that all liquidity from bond purchases is being withdrawn. This is NOT quantitative easing…
(The euro is tanking hard on this press conference)
Question: The market was expecting a bazooka. Should it be bumed that it didn’t get it?
Trichet: I said what I’ve said..We will remain “credible alertness” which has always been part of our doctrine.
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