Trichet Says ECB to Offer Banks More Cash as Debt Crisis Spreads
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European Central Bank President Jean-Claude Trichet said the ECB will offer banks additional cash as the region’s debt crisis spreads, increasing pressure on policy makers to resume bond purchases.
The ECB will lend euro-area banks as much money as they need for six months and extend its existing liquidity measures through the end of the year, Trichet said at a press conference in Frankfurt today after the ECB kept its benchmark interest rate at 1.5 percent. ECB rates are still “accommodative” and inflation risks “remain on the upside,” he said.