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ECB chief Jean-Claude Trichet (Photo: Swedish Presidency)

ECB to continue bond purchases till spring 2011

The European Central Bank (ECB) has moved to ease market jitters over eurozone sovereign debt by announcing that the authority will continue to supply liquidity to troubled banks into the spring of next year.

There had been concerns, as indicated by public pronouncements from ECB board members, that now was the time for banks to ween themselves off the central bank's liquidity teat.

Many banks had feared that the ECB would slowly begin to phase out its liquidity scheme, officially...

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ECB chief Jean-Claude Trichet (Photo: Swedish Presidency)

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