By Andreas Scholz and Jana Randow Nov. 14 (Bloomberg) -- European Central Bank President Jean- Claude Trichet said the bank's ``considerable'' policy action will help restore confidence in Europe's contracting economy. ``Having taken a number of measures that are considerable as regards their importance, confidence will grow back,'' Trichet said in an interview with Bloomberg Television in Frankfurt today. He described the economy as being in a period of ``stagnation with negative figures'' after the region slipped into its first recession in 15 years. Trichet has already indicated the ECB may cut interest rates again in December after two reductions in the key rate to 3.25 percent over the past month. Gross domestic product in the 15 euro nations shrank 0.2 percent for the second straight quarter in the three months through September, the European Union's Luxembourg- based statistics office said today. The news was ``not surprising,'' Trichet said. ``We have said that the real economy was hit by the turbulences,'' he said. Restoring confidence ``is a process that we will try to help ourselves; confidence in price stability, confidence of the households that their purchasing power will be preserved, confidence of the economic agents in general,'' Trichet said. ``Confidence is the key word, motto, in the present period.'' To contact the reporters on this story: Andreas Scholz in Frankfurt at agscholz@bloomberg.net; Jana Randow in Frankfurt at jrandow@bloomberg.net.

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