Honohan: ECB can’t help bond markets

GLOBAL investors cannot expect the ECB to support bond markets in the medium term, the governor of the Irish Central Bank, Patrick Honohan, said yesterday.

In an interview with The Wall Street Journal, Mr Honohan warned the markets would be wrong to expect the ECB to put off raising interest rates if inflationary pressures persist in the eurozone.

Fresh measures were needed, however, to restore market confidence in the rescue packages for Ireland and Greece, he said, though Ireland is on track to meet its own targets of getting the finances of the Government and banks under control.