European Central Bank’s Trichet says governing council did not discuss buying government bondsBy Pan Pylas, AP
Thursday, May 6, 2010
ECB did not discuss buying government bonds
LISBON, Portugal — The European Central Bank’s governing council did not discuss buying government bonds in the markets as a way of easing the debt crisis engulfing the eurozone.
Bank president Jean-Claude Trichet also told a press conference Thursday that the governing council did not discuss the need to create an orderly default mechanism for the eurozone.
There has been widespread speculation in the markets that the bank may take further anti-crisis steps to keep the debt crisis in Greece from speading to other countries and dragging down the euro — the purchase of government bonds was one of the suggestions doing the rounds.
Trichet’s comments came after the bank decided to keep its main interest rate unchanged at 1 percent.