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Interview with ECB Exec Board Member Schnabel...>

ECB
ECB: Interview with ECB Exec Board Member Schnabel In La Repubblica:
- Q: Going back to a much-quoted sentence of President Christine Lagarde that
caused so much discussion and also a lot of reaction in the markets, may I ask
you if the ECB is there to close spreads?
- A: The ECB has to ensure that its monetary policy reaches all parts of the
euro area. A divergence of spreads is often a sign of fragmentation, and such
fragmentation hampers the smooth transmission of our monetary policy. We are
committed to countering such fragmentation with appropriate policy measures. And
the PEPP is the right policy tool in this respect. It prevents self-reinforcing
spirals and fire sales in sovereign debt markets.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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