Lagarde speech: ECB closely monitoring evolution of longer-term nominal bond yields
The European Central Bank will look at indicators from risk-free rates to government borrowing costs to capital markets to bank lending for firms and households, Christine Lagarde, President of the ECB, said on Monday, per Reuters. "Accordingly, the ECB is closely monitoring the evolution of longer-term nominal bond yields," Lagarde added.
Additional takeaways
"The Pandemic Emergency Purchase Programme (PEPP) envelope of €1.85 trillion gives us considerable firepower and flexibility in conducting purchases."
"The ECB will continue to support all sectors of the economy by preserving favourable financing over the pandemic period."
"This commitment implies looking at indicators along the whole transmission chain of our monetary policy."
Market reaction
The EUR/USD pair paid little to no mind to these comments and was last seen trading at 1.2143, rising 0.2% on the day.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
