ECB Ready to Act Against Market Volatility

In a decisive statement, European Central Bank (ECB) President Christine Lagarde emphasized the ECB's readiness to deploy all available instruments to safeguard price and financial stability. This comes in response to the recent tariffs imposed by the United States, which have stirred the global markets.

Monitoring Market Dynamics Closely

Lagarde highlighted the ECB's vigilant monitoring of market conditions, noting a "degree of volatility" amidst these developments. However, she reassured that the market infrastructure, including the bond markets, remains orderly and functional.

Exchange Rates and Inflation Under Watch

The ECB is also keeping a close eye on the potential impact of fluctuating exchange rates on inflation. While Lagarde acknowledged the recent forex volatility, she chose not to delve into specifics, leaving markets to ponder the ECB's next moves.