ECB President Lagarde: Central Bank Has Tools to Address Unwarranted Market Volatility

ECB President Christine Lagarde told eurozone finance ministers that the central bank has tools to stabilize financial markets if needed. Sources said at a closed-door meeting in Luxembourg, when asked about sovereign bond spreads, Lagarde reiterated the ECB's stance that the institution closely monitors whether financial markets are functioning well. She added that for market dynamics that threaten the smooth transmission of monetary policy and lack justification or order, the ECB has corresponding tools to address them, subject to clear applicability conditions.