FRANKFURT, June 4 (Reuters) - A very large share of covered bonds issued in the euro area will qualify for the European Central Bank's purchase programme, ECB President Jean-Claude Trichet said on Thursday.
In an interview with Reuters Television, Trichet also said the ECB did not decide that the current level of interest rates was the lowest ever, but rates were appropriate for now.
The ECB kept interest rates on hold at a record low of 1 percent earlier on Thursday and unveiled details of its 60 billion euro asset purchase plan, which will include covered bonds backed by both mortgage and public sector loans.
"We will see exactly what issuance falls into the category; in a number of categories we are expecting new issuance so we will see and we will check permanently," Trichet said.
"It's true that our present eligibility criteria will cover a very, very, very large part of the covered bonds, when I look at the market capitalisation."
Asked if there was scope to increase the programme, he noted that even the in-principle decision made a month ago had boosted the market and said: "We have decided 60 billion, I have nothing to add to that."
"I don't want to engage in any speculation on future decisions. Today's decisions suffice, and we have to implement that in the best fashion possible."
Trichet said downward revisions to ECB staff projections for GDP largely reflected a weaker-than-expected performance in the final quarter of 2008 and the first quarter of 2009.
"The profile for the rest of the year and for 2010 is very much the same," he said.
"I am fully conscious of the uncertainties which characterise the present situation but I have to say on the other hand, all projections agree on the fact that 2010 is normally the year for ... the start of the recovery. We will see exactly what happens, and I would say it depends on us, it depends on our capacity to improve confidence."
On whether the ECB had reached the lowest limit for rates, he said he had nothing to add to his comments a month ago.
"To the world I repeat exactly the same: we did not decide it was the lowest level of interest rates that we would ever atain, whatever the circumstances. But that being said, at the moment I am speaking we consider that interest rates are appropriate," Trichet said.
Asked if economists wrong to bet on another rate cut before end of Q3, he said he had nothing to add.
The ECB has cut rates from 4.25 percent since last October. (Reporting by Krista Hughes; editing by David Stamp)