Reply #163: Trichet says ECB stance aims for price stability

[Ghost Dog]

Mon Sep 22, 2008 3:54pm EDT PARIS, Sept 22 (Reuters) - The European Central Bank's monetary policy stance aims to preserve medium-term price stability, ECB President Jean-Claude Trichet said on Monday.

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"We have a monetary policy stance that is always to preserve price stability in the medium-run," Trichet said. "I would say to all consumers, to all households...you can count on us, we will deliver price stability over the medium term."

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In a section of the interview released earlier, Trichet called for change in the financial system and for greater transparency.

"It is the full body of the system which has to be reviewed, and we have to take care," Trichet said.

Asked whether he could imagine a situation where the ECB puts together a U.S.-style rescue package for financial firms, Trichet said: "We have a responsibility as regards liquidity providing, we have no responsibility as regards the solvency issue that might emerge here and there."

The "solvency responsibility is the responsibility of the executive branches," he said.

/... http://www.reuters.com/article/bondsNews/idUSLM13695420080922?rpc=401&