ECB Prepared to Act for Stability

European Central Bank (ECB) President Christine Lagarde emphasized the ECB's readiness to utilize all available instruments to ensure price and financial stability, particularly in response to the recent tariffs imposed by the United States. Lagarde highlighted the ECB's vigilant monitoring of market conditions, acknowledging a "degree of volatility" but reassuring that market infrastructure and operations, including those in bond markets, remain orderly.

Exchange Rates and Inflation Under Watch

Lagarde also pointed out the ECB's attention to how fluctuations in exchange rates might influence inflation. However, she chose not to delve deeper into the specifics of the recent foreign exchange market volatility, leaving markets pondering the ECB's next moves.