Central Banks
ECB Task Isn’t Clouded by Financial-Risk Worry, Lagarde Says
- President’s remarks to lawmakers revisit Thursday’s language
- Lagarde also repeats statement regarding Credit Suisse
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The European Central Bank doesn’t see any conflict between its inflation-targeting mission and its responsibility to stave off financial-system threats, President Christine Lagarde said.
“Price stability goes with financial stability, and they are both present and come together — but there is no trade off,” she told lawmakers in Brussels on Monday. “Financial stability to the extent that it impacts the economic situation, to the extent that it impacts our projections, has an impact on how we see the situation from a macroeconomic point of view, but they are two different stabilities addressed by different tools.”