ECB Maintains Benchmark Rate Amid European Debt Troubles
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According to European Central Bank President Jean-Claude Trichet on Thursday, the ECB will continue to offer longer-term special liquidity tenders through next year.
The news comes as a relief to the troubled debt markets in Europe, which had expected the liquidity measures to be phased out in the early part of 2011.
"The current ECB interest rates are appropriate," Trichet said at a press conference in Frankfurt Thursday. "Overall the current monetary policy stance remains accommodative. The allotment mode and stance will be adjusted as needed."
Trichet said that the ECB will continue to offer unlimited loans to through the first quarter of next year, as the central bank left the unchanged at 1 percent. The ECB currently offers banks as much cash as needed at the benchmark rate for periods of one week, one month and three months.
The news comes as a relief to the troubled debt markets in Europe, which had expected the liquidity measures to be phased out in the early part of 2011.
"The current ECB interest rates are appropriate," Trichet said at a press conference in Frankfurt Thursday. "Overall the current monetary policy stance remains accommodative. The allotment mode and stance will be adjusted as needed."
Trichet said that the ECB will continue to offer unlimited loans to through the first quarter of next year, as the central bank left the unchanged at 1 percent. The ECB currently offers banks as much cash as needed at the benchmark rate for periods of one week, one month and three months.
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