• ECB’s Wunsch: Anti-fragmentation tool should have no limits if market moves are unwarranted

Noticias del mercado

28 junio 2022

ECB’s Wunsch: Anti-fragmentation tool should have no limits if market moves are unwarranted

European Central Bank (ECB) policymaker Pierre Wunsch said on Tuesday that the central bank’s new “anti-fragmentation tool should have no limits if market moves are unwarranted.”

Also read: Lagarde speech: There is optionality to raise by more in September

Additional quotes

ECB should avoid hard triggers based on spreads or single indicators for the anti-fragmentation instrument.

Credibility of fiscal policy should be key determining factor in the deployment of anti-fragmentation instrument.

Comfortable with a 50-bps rate hike in sept; 200 bps of hikes needed "relatively fast".

Inflation at risk of moving to a higher regime.

Market reaction

Amidst a bevy of ECB policymakers speaking on inflation and policy lately, EUR/USD is digesting the comments, currently trading flat at 1.0585.

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