Bloomberg News

Noyer Says ECB Liquidity Effort Is a ‘Bazooka,’ May Cut Yields

December 09, 2011

Dec. 9 (Bloomberg) -- European Central Bank governing council member Christian Noyer said that the liquidity measures the central bank announced yesterday amount to a “bazooka” that should help lower borrowing costs for euro area states.

“What we decided yesterday was to use our own bazooka,” Noyer said in an interview to be broadcast later today on LCI television. “These measures are a spectacular reinforcement of bank liquidity over a long period.”

The injection of funds into the banking system “should allow us to reduce rates for governments,” he added.

Noyer also said the agreement reached by euro area leaders today in Brussels had “all the necessary ingredients to restore confidence” and that if confidence improves, so will the euro area’s 2012 growth prospects.

To contact the reporter on this story: Mark Deen in Paris at markdeen@bloomberg.net

To contact the editor responsible for this story: Anne Swardson at aswardson@bloomberg.net


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