• ECB may need to add support if yields hurt growth - Schnabel

Market news

26 February 2021

ECB may need to add support if yields hurt growth - Schnabel

Bloomberg reports that Executive Board member Isabel Schnabel said that the European Central Bank may need to boost its monetary support for the economy if rising government borrowing costs hurt growth.

“A rise in real long-term rates at the early stages of the recovery, even if reflecting improved growth prospects, may withdraw vital policy support too early and too abruptly given the still fragile state of the economy. Policy will then have to step up its level of support,” she said.

Schnabel’s remarks add to a sense of concern from the ECB that the bond market threatens to stifle the euro region’s recovery even before it’s begun.

On Thursday, Chief Economist Philip Lane said the ECB will use the flexibility of its emergency bond-buying program to prevent any undue tightening in financial conditions.

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.