‘Don’t Fight the ECB’ Can Get One More Shout
Even small measures to help euro-zone lenders would usefully signal to the markets that the central bank is still actively managing the crisis.
European Central Bank President Christine Lagarde should broadcast a familiar message.
Photographer: Xinhua News Agency
Do central bankers learn from their mistakes? After sounding inflexible in March, Christine Lagarde fortunately changed tack and unambiguously demonstrated her resolve to defend the euro area from the impact of the pandemic.
The challenge now facing the president of the European Central Bank is to show the institution is still fighting the crisis when the need for big initiatives has been satisfied. Fine-tuning the existing support measures could nevertheless go a long way when the ECB governing council meets today.