ECB Governing Council: extracts from the press conference by Jean-Claude Trichet, President of the European Central Bank
Type: Summary of press conference
End production: 05/03/2009 First transmission: 05/03/2009
As expected by financial experts and economists, the Governing Council of the European Central Bank (ECB) cut its key interest rate by 50 basis points to lower EU inflation, the deteriorating growth and increasing financial turmoil in Europe. New figures released by the EU's statistics office, Eurostat, showed unemployment in the euro area has reached 8.2 percent, the highest level for two years, following the loss of over a quarter of a million jobs in January. Recent EU economic data shows that the inflation rate is at its lowest level in nine years. The ECB expects inflation to continue to fall until the middle of this year, before gradually starting to increase again.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Jean-Claude Trichet, President of the European Central Bank, at the press conference (3 shots)
||SOUNDBITE (in English) by Jean-Claude Trichet, President of the European Central Bank, on the ECB key interest rate: on the basis of its regular economic and monetary analyses, the Governing Council decided to reduce the key ECB interest rates by a further 50 basis points; this decision brings the total reduction in the interest rate on the main refinancing operations of the Eurosystem since 8 October 2008 to 275 basis points; overall, inflation rates have decreased significantly and are now expected to remain well below 2% over 2009 and 2010; this outlook for inflation is due to the fall in commodity prices and diminishing domestic price and cost pressures, reflecting the severe downturn in economic activity.
||Cutaway of press
||SOUNDBITE (in English) by Jean-Claude Trichet: As regards the present level of the main refinancing operations, I would say that we did not decide ex ante that this was the lowest point that we could attain; further decision will depend on facts, figures and judgment on the basis of the Governing Council discussion.
||SOUNDBITE (in English) by Jean-Claude Trichet: We have decided to put our deposit facility at the level of 0.5 %, which is very low; the decision to put at that level our deposit facility is something of great importance.
||SOUNDBITE (in English) by Jean-Claude Trichet, on further non standard measures: We are discussing and studying possible new non standard measure; we have absolutely no pre-commitment to any particular non standard measure.