ECB VP de Guindos says battling fragmentation will enhance the central bank's overall monetary policy transmission.
The European Central Bank's commitment to fight fragmentation should not interfere with, but rather enable, a greater focus on the overall monetary policy stance, bank Vice President Luis de Guindos said Monday.
Speaking at the Frankfurt Euro Finance Summit, he said preventing fragmentation allows the ECB to adjust its monetary policy stance at the appropriate pace and stabilise inflation at target. (MNI SOURCES: ECB Focussing On Conditions For New Crisis Tool)
Looking at policy, de Guindos said the ECB had already announced its intention to raise rates by 25 bps in July, with another hike in September -- when a larger hike could be appropriate if the medium-term inflation outlook persists or deteriorates.