Central bankers have come under increasing pressure to cut interest rates in the eurozone to boost the economy, given fears that governments' failure to resolve their debt problems threatens to tip the region back into recession.
However, ECB policymakers have been reluctant to reverse their recent round of rate increases, given that inflation in the eurozone is running at 3pc, well above the target of just under the 2pc level.
There were signs of dissent, as Mr Trichet, giving his last press conference before he steps down after eight years in the role, said that the decision to keep interest rates on hold was not unanimous.
Nonetheless he stuck to the argument that the ECB's role is to support the eurozone economy through "anchoring" prices and that it should fall to politicians to resolve the debt crisis. "All governments need to take decisive and frontloaded action to bolster public confidence in the sustainability of government finances," he said.
Meanwhile, banks should improve their balance sheets, showing "moderation" in rewarding staff and making use of government support, Mr Trichet said, recommending that the eurozone's rescue fund, the European Financial Stability Facility, be able to funnel funds to banks.
His comments came amid rising hopes that Europe's politicians are set to take coordinated action to shore up the region's banking sector.
"We are now proposing member states to have a coordinated action to recapitalise banks and so to get rid of toxic assets they may have," Jose Manuel Barroso, president of the European Commission, said. Germany, the eurozone's powerhouse economy, has backed the idea.
The euro jumped on the back of Mr Barroso's comments, rising 0.3pc against the dollar.
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