December 3, 2010
The European Central Bank redoubled its efforts to shore up the credit markets of vulnerable euro-area countries through government bond purchases, even as it resisted pressure to take even bolder action to help stem the region's debt crisis.
Rejecting pleas from some economists and European officials that the central bank intervene in the markets on a grand scale, ECB President Jean-Claude Trichet pressed governments to beef up their own rescue capabilities and suggested European leaders may need to consider increasing the size of the region's €750 billion ($985.3 billion) bailout fund. "We call on all authorities to be up to their responsibilities," he said.
Nevertheless, Mr. Trichet reiterated that the ECB was prepared to make use of its seven-month-old bond purchasing program to support weak euro-area members, and traders reported that the ECB was actively acquiring the debt of Ireland and Portugal even as he spoke.
"We are constantly alert, we are constantly looking at the situation of the markets and at the acute tensions," Mr. Trichet said.
More
No comments:
Post a Comment