The European Central Bank President, Christine Lagarde has mentioned fragmentation as the threat to the price stability mandate.
Citing an EU source familiar with the matter, Reuters gave the report on Thursday, 16th of June, 2022.
Doubting our commitment would be a serious mistake,” Lagarde reportedly added. “The goal of anti-fragmentation tool is not to close spreads, but to normalize spreads.”
The comment however had no effect as EUR/USD pair was last seen rising 1.25% on the day at 1.0570.
Meanwhile, Italian Prime Minister Mario Draghi said on Thursday that the European Central Bank’s (ECB) decision to hike the interest rate is inevitable.
In his words, ”ECB interest rise is bound to be more gradual than in the US”. He added that it was totally counterproductive for politicians to comment on the ECB’s policy.
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