ECB to Do What's Needed for Price Stability: Trichet

The financial markets have understood the European Central Bank (ECB) will do what is necessary to achieve its goal of price stability, ECB President Jean-Claude Trichet was quoted as saying on Sunday.

Germany's Der Tagesspiegel newspaper said Trichet defended the language he used about the central bank's quarter-point interest rate hike on Dec. 7, which took its key lending rate to a five-year high of 3.5 percent.

"What the market has understood perfectly is that we will do what is necessary without tying our hands ex ante," the paper quoted Trichet as saying, in a preview of its Monday edition.

"We know where we must go and there is no doubt about our goal: price stability," he added.