Economy

ECB’s spread-fighting tool will have ‘safeguards’: Lagarde

FILE PHOTO: President of European Central Bank Christine Lagarde addresses a news conference following the meeting of the Governing Council’s monetary in Frankfurt, Germany March 10, 2022. Daniel Roland/Pool via REUTERS

SINTRA, Portugal (Reuters) – The European Central Bank’s upcoming bond-buying programme will rein in a disorderly widening of bond yield spreads in the euro zone while keeping the pressure on governments to keep their budgets in order, the ECB’s President Christine Lagarde said on Tuesday.

“The new instrument will have to be effective, while being proportionate and containing sufficient safeguards to preserve the impetus of Member States towards a sound fiscal policy,” she told the ECB’s annual forum in Sintra, Portugal.

With the ECB set to raise interest rates for the first time in a decade next month, Lagarde said the central bank will move gradually but with the option to act decisively on any deterioration in medium-term inflation, especially if there are signs of a de-anchoring of inflation expectations.

Source

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Become a Millionaire by Trading Crypto!