Oct. 11 (Bloomberg) -- European Central Bank President Jean-Claude Trichet said fears that the bank’s government bond purchases may create price pressures are “totally unfounded.”
“The purchase of Treasuries on the secondary market, is not at all a quantitative easing programme. We are rigorously withdrawing all the liquidity which is provided,” Trichet said in an interview with Germany’s Welt newspaper to be published tomorrow. “We are fully credible to deliver price stability over the next 10 years, according to observers and market participants,” he added, according to a transcript provided by the ECB.
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