Trichet Says ECB to Phase Out Emergency Measures


European Central Bank President Jean- Claude Trichet said officials will withdraw some of the emergency liquidity measures introduced to fight the worst recession since World War II.

Not all our liquidity measures will be needed to the same extent as in the past” as the economy recovers, Trichet said at a press conference in Frankfurt today. The Governing Council will make sure that the extraordinary liquidity measures taken are phased out in a timely and gradual fashion and that the liquidity provided is absorbed in order to counter effectively any threat to price stability over the medium to longer term.”

Trichet declined to say whether the ECB will apply a spread on next month’s unlimited auction of 12-month cash.

TradingEconomics.com, Bloomberg
11/5/2009 9:22:55 AM