ECB Governing Council meeting: press conference by Jean-Claude Trichet, President of the European Central Bank (ECB)
As expected by economists, the Governing Council of the European Central Bank (ECB) decided on 05/11/2009 to leave unchanged the interest rate on the bank's main refinancing operations and the interest rates on the marginal lending facility and the deposit facility, at 1.00%, 1.75% and 0.25% respectively, as the bank prepares to exit emergency stimulus measures.
At his monthly press conference, Jean-Claude Trichet, President of the European Central Bank, played down a speedy recovery in the euro area. He also indicated that the bank would wait one more month to decide on the 12-month long-term refinancing operations (LTRO). "I will only say at this stage that the market, as far as I see it, is not expecting that we will prolong the LTRO one year over and I would say nothing to dispel this present sentiment", he added.
Other policy makers have expressed concern that the economy remains too fragile to remove stimulus measures, and may want more evidence of a recovery before committing to action.