Courtesy of Reuters, but with a ruthless FT Alphaville edit, we bring you the president of the European Central Bank. (HT Bohemia)
TRICHET ON WHETHER THE ECB SEES A CREDIT CRUNCH
We see no credit crunch, certainly not when you look at the figures that have been published… Since mid-September we have a very, very, big, significant intensification of intentions which are associated in particular, but not exclusively, with the collapse of Lehman Brothers and since then we are in a situation where we have to be particularly attentive but I cannot say at all that at the moment we are seeing a credit crunch…On the contrary we continue to see outstanding credit continue to growth.
TRICHET ON THE ECB’S ROLE IN HELPING THAW FROZEN MONEY MARKETS
Central banks are a brotherhood of mutual admiration which is very, very strong.
TRICHET ON WHETHER ECB WAS IN CONTACT WITH OTHER CENTRAL BANKS BEFORE TODAY’S DECISION
We are in permanent contact with the ’sister’ institutions, not only with the US Fed or the Bank of England or the Bank of Japan, but with other industrialised countries’ central banks and with the emerging economies’ central banks.
TRICHET ON PROFESSIONAL FORECASTERS’ SURVEY
From the figure I have just given, you deduce you can withdraw an element of risk premia that would give you a breakeven which will be very much in line with our definition of price stability over the medium term.
TRICHET ON WHETHER ECONOMY IN RECESSION
It’s clear we have more and more, depending on the vintage of the projections, indications by all private and public entities the sentiment that after the very recent intensification of the financial turbulences, particularly since mid-September, which marked a new episode in the intensification of the financial turbulences, the impact on the real economy seems to be more and more important and then negative figures are appearing progressively.
Uh?
Related link:
European rates cuts on Thursday - FT.com and Chris Giles video
