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Lagarde asked on YCC and lack of BTP impact from political developments

ECB
  • Q: Why is the ECB supporting a market at a time when Italian political ructions have not had a noticeable market impact. What is your reply that the ECB is doing de facto yield curve control?
  • A: The ECB's aim is to preserve favourable financing conditions in the euro area. The assessment of favourable financing conditions is not driven by any single indicator, but multiple factors including bank lending, credit lending, corporate and sovereign yields etc. Government bond rules play an important benchmark role for the pricing of credit. At the moment, there are no yield developments that pose an issue for euro area wide financing conditions.

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