The European Central Bank’s tool to combat rising government bond yields in some eurozone countries should not interfere with the bank’s anti-inflation target, said ECB Vice President Luis de Guindos.
“Fragmentation tools should not interfere with the overall monetary policy approach, which should focus on combating inflation,” de Guindos said at an event in Spain.
At an emergency meeting last week, the ECB decided to steer bond reinvestment to help countries at the southern tip of the eurozone, and devise a new instrument to reduce debt cost gaps.
De Guindos said the fragmentation was among the ECB’s major concerns and that he was committed to fighting it, although details have not yet been discussed in the board. the bank’s.
Source: Capital
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