Lagarde implies yield compression is official ECB policy

By Burhan Khadbai
12 Nov 2020

One of the European Central Bank's outright aims is to suppress government bond yields, ECB president Christine Lagarde hinted in a keynote speech on Wednesday.

“Normally, an easing of financing conditions boosts demand by encouraging firms to borrow and invest, and households to bring forward future income and consume more,” Lagarde told the ECB Forum on Central Banking on Wednesday.

“In turbulent times, monetary policy interventions also eliminate excess risk pricing from the ...

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