ecb

European Central Bank President Jean-Claude Trichet called Monday for calm in the continent's jittery markets, saying they are overestimating risks and the euro-zone central bank stood ready to provide all the liquidity needed for as long as necessary.

The European Central Bank (ECB) shifted away slightly from an inflationary guard on Thursday, as the bank suggested the possibility of reducing interest rates later this year to help spur growth.

A European interest rate cut could, some economists say, help reduce U.S. inflation.

Europe's major central banks banded together with their counterparts in Japan, the U.S. and Canada on Thursday to inject more U.S. dollars into global money markets in a bid to stave off the growing global financial crisis.

European Central Bank President Jean-Claude Trichet on Saturday defended central bank responses to the financial turmoil that has roiled global markets for the past year and warned the storm is not over.

"It is intended to continue the provision of U.S. dollar liquidity for as long as the governing council considers it to be needed in view of the prevailing market conditions"