ECB 'winding down' stimulus measures

The European Central Bank (ECB) is set to start the withdrawal of economic stimulus measures, it has emerged.

ECB president Jean-Claude Trichet announced in Frankfurt today (December 3rd) that banks will no longer have access to the short-term loans designed to aid liquidity and encourage lending.

’Improved conditions in financial markets have indicated that not all our liquidity measures are needed to the same extent as in the past,’ Mr Trichet remarked.

His comments came shortly after the ECB announced that interest rates will be held at one per cent - the lowest level in the organisation’s ten-year history.

Meanwhile, governing council member Axel Weber told Reuters after the ECB’s monthly press conference that he believes money markets are yet to return to their normal state.

’I agree that the money market may have improved but it is still in the process of normalising,’ he commented.

Official figures from Eurostat have shown that the eurozone recorded economic growth of 0.4 per cent in the third quarter of the year.
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