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UPDATE 1-Trichet: not the time to start exit strategies-CNN

Published 09/28/2009, 02:58 PM
Updated 09/28/2009, 03:03 PM

BERLIN, Sept 28 (Reuters) - European Central Bank President Jean-Claude Trichet said on Monday it was too early to start exit strategies from stimulative policies, and that inflation expectations were priced in to medium- and long-term interest rates.

"We consider that it is not the time to start the exit and it is not the time to say that the crisis is over," Trichet said in an interview screened on Monday by broadcaster CNN.

"Everybody knows that we have an exit strategy, which is good. To oppose exit strategy and recovery is plain wrong in my opinion. Because if you have (a) credible exit strategy that you would implement when (the) time comes then you reinforce confidence, and while you are reinforcing confidence you have the recovery."

Trichet added it was extremely important to have a strong dollar.

"President Obama says that a strong dollar is in the interest of the United States of America. I trust that and I trust it is true," he said.

Earlier on Monday Trichet addressed a hearing of a European Parliament committee in Brussels. For highlights of his address please click: [ID:nLS314160].

For a story on Trichet's address and comments by ECB Governing Council member Ewald Nowotny please click: [ID:nLS344765] (Reporting by Alexandra Hudson; Editing by James Dalgleish)

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