MNI BRIEF: EU Gentiloni Sees ‘Gradual’ Changes In ECB Rates

Recent comments from ECB officials suggest that financing conditions would remain favourable, even for high debt states, despite recent rises in bond yields and widening spreads, EU Economic Affairs Commissioner Paolo Gentiloni said Thursday.

“President Lagarde a few days ago in the European Parliament reiterated that any adjustment to the ECB’s monetary policy would be gradual,” he said.

Conceding the recent rise in benchmark yields on expectations of higher future interest rates, Gentiloni added that "real rates remain in negative territory at this moment and the perspective for ECB policy suggests still favourable financing conditions and a limited impact on the real economy also for high debt countries”.