LONDON (MNI) – European Central Bank President Jean-Claude
Trichet said today that it was clear that the money markets are not
functioning perfectly and so the ECB had been obliged to take action.
Speaking at a press conference following the ECB’s monthly
Governing Council meeting in Frankfurt, Trichet said:
“We see there is a new tension as far as demand for liquidity…
it means we have a money market that is not functioning perfectly,
that’s absolutely clear.”
Trichet said that the ECB was doing its best to restore order in
those markets and so assist the transmission of policy:
“One decision, one institution, one currency. We are helping to
restore appropriate functioning of markets, that were hampering monetary
policy transmission.
–London Newsroom: 00442078627492; email: dthomas@marketnews.com
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