ECB June Press Conference on Covered Bond Plan

June 4 was the much-anticipated anticipated day on which the European Central Bank (ECB) revealed the details of its plan to purchase €60 billion (nearly USD $85 billion) in covered bonds.  On the same day, the ECB announced that it would leave key interest rates unchanged.

Jean-Claude TrichetThis resource item begins with a prepared statement by ECB president Jean-Claude Trichet on the topic of interest rates, followed by the ECB's official transcript of a press conference in which Trichet and ECB vice president Lucas Papademos answered questions from the media.  A number of press inquiries concerned the covered bond purchase plan—such as whether there had been calls for expanding the purchase amount, and whether the program might possibly be "unleashing potential inflationary risks."  However, Trichet basically declined to address those questions.

To download a PDF of  the "Introductory Statement with Q&A," click on "20090604 ECB Q&A" under "Attachment" below.  For a transcript of the ECB's May press conference containing Trichet's initial discussion of the covered bond program, click here.]