ECB’s Wunsch: Anti-fragmentation tool should have no limits if market moves are unwarranted
|European Central Bank (ECB) policymaker Pierre Wunsch said on Tuesday that the central bank’s new “anti-fragmentation tool should have no limits if market moves are unwarranted.”
Also read: Lagarde speech: There is optionality to raise by more in September
Additional quotes
ECB should avoid hard triggers based on spreads or single indicators for the anti-fragmentation instrument.
Credibility of fiscal policy should be key determining factor in the deployment of anti-fragmentation instrument.
Comfortable with a 50-bps rate hike in sept; 200 bps of hikes needed "relatively fast".
Inflation at risk of moving to a higher regime.
Market reaction
Amidst a bevy of ECB policymakers speaking on inflation and policy lately, EUR/USD is digesting the comments, currently trading flat at 1.0585.
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