Bloomberg News

Trichet Says ECB to Be Totally Faithful to Mandate Under Draghi

October 06, 2011

Oct. 6 (Bloomberg) -- European Central Bank President Jean- Claude Trichet said the ECB will continue to deliver price stability under his successor Mario Draghi.

“I think the central bank will continue to be totally faithful to its mandate,” Trichet said in an interview with Bloomberg Television in Berlin today, after the ECB kept its benchmark interest rate at 1.5 percent. “We always do what we judge necessary to deliver price stability.”

Trichet announced earlier today that the ECB will resume its covered-bond program next month and offer banks loans of up to 13 months to fight the crisis. The Frankfurt-based central bank also committed to lend banks unlimited liquidity for up to three months through the first half year of 2012.

“We took a very important decision on the non-standard measures and we trusted that this was extremely important in the present circumstances,” Trichet said. As regards the government-bond plan “I only say that it’s” ongoing.

Trichet, who will step down as ECB president at the end of the month, also called for a “fierce application” of the reforms governments agreed on at a July 21 summit of leaders.

--With assistance from Jana Randow in Frankfurt. Editors: Simone Meier, Matthew Brockett

To contact the reporters on this story: David Tweed in Tokyo at dtweed@bloomberg.net; Christian Vits in Frankfurt at cvits@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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