Date: Friday 11 Jun 2010
The ECB kept interest rates at 1% before president Jean-Claude Trichet told a news conference that the central bank will continue with unlimited three-month tenders, but that the measures were just temporary.
Experts say the lack of new measures indicates that eurozone policymakers do not think market conditions have deteriorated enough to warrant fresh emergency action.
Trichet told journalists at last month’s press meeting he had no intention of beginning bond purchases, only to announce the programme three days later.
The euro, which climbed above $1.21 for the first time in almost a week, also received the backing of China.
Dai Xianglong, chairman of the National Social Security Fund, said the swings being experienced by the single currency were quite normal because of the European debt crisis, and that it should “gradually stabilize and survive the crisis”.
The greenback was also weaker against the pound thanks to an increase in risk appetite, although there was little reaction to the Bank of England’s latest policy announcement.
There was never likely to be any other outcome as the eurozone remains locked in a struggle to keep the economic alliance in one piece, and the UK’s new coalition government prepares to unveil its austerity budget on 22 June.
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