Economics
Lagarde Hails Proactive ECB Policy on Bonds to Protect Recovery
- ECB pledged to intensify bond-buying in $2.2 trillion stimulus
- But inflation still won’t exceed 1.5% in next three years
Christine Lagarde speaks during the live stream of a news conference in Frankfurt.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
European Central Bank President Christine Lagarde unveiled a new phase of her institution’s relationship with the bond market in a more-active policy to cap yields, frontloading stimulus to protect an economic recovery still taking time to emerge.
Lagarde said certain recent market moves would become “undesirable” if they persist, citing negative implications for the economy and inflation. She spoke after policy makers opted to accelerate government-debt buying.