ECB Stands Ready to Support Banks If Needed After France Vote
- ECB could use refinancing operations, emergency liquidity tool
- Bank of France Governor declines comment on vote preparations
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European Central Bank officials signaled that their liquidity facilities remain available to counter any market tension that may arise in the aftermath of France’s presidential election, the first round of which takes place Sunday.
“The central bank should be ready for any shocks that should materialize,” Governing Council member Ignazio Visco said at a press conference during the International Monetary Fund spring meetings in Washington on Saturday. “And if there were to be such a shock, the instruments are the instruments that a central bank should use, which are liquidity provision, refinancing when needed. And intervening very quickly is really very easy now given the instruments we have.”