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Lagarde Tells Ministers ECB Plans for Limit on Bond Spreads

  • ECB chief addresses finance ministers’ meeting in Luxembourg
  • Central bank aiming to allay concerns about euro-area bonds
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WATCH: On Thursday ECB President Christine Lagarde gave euro-area finance ministers details about the new anti-crisis tool. Lizzy Burden has the latest.Source: Bloomberg
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European Central Bank President Christine Lagarde told euro-area finance ministers that the ECB’s new anti-crisis tool will kick in if the borrowing costs for weaker nations rise too far or too fast, according to people briefed on their discussions. 

At a meeting in Luxembourg Thursday, Lagarde explained to ministers that the new mechanism that central bank officials are devising is intended to prevent irrational market movements from putting pressure on individual euro nations as ECB embarks on its first interest-rate hikes in more than a decade, the people said, asking not to be identified discussing private conversations.