Lagarde: ECB Is Not Conducting Yield Curve Control

Q: Is explicit yield curve control completely off the table as a strategy?

• A: We are looking at multiple options and proposals in the strategy review. We also have our usual business of deciding monetary policy every six weeks which is guided by what was decided in September with respect to preserving favourable financing conditions, which is not yield curve control.

Q: How much is the tourist season this year likely to be saved? There is a debate about how much debt governments can safely hold. Do you think that European governments can safely have a lot more debt in the future, i.e. significantly above the 60% Maastricht criteria?

• A (on tourism, from VP de Guindos): If vaccination rollout gains momentum then this would be a positive sign that the summer tourist season would not be completely lost.
• A on debt: The real question is what use is made of debt going forward. Is the public spending targeted and temporary to cross the bridge of the pandemic? Is this public financing going to be spent on productivity enhancing reforms? If that is the case then this is debt put to good use.

PRESS CONFERENCE ENDS