Christine Lagarde’s ECB press conference was a blunder from the point of view of market stabilisation. But now they are all in on bond buying with earlier caps/restrictions lifted. This was the easiest fix to avoid the difficulty of issuing EU-wide corona bonds. Is it really true that “There are no limits”? The ECB probably hopes this will never be tested. Confidence in Lagarde’s abilities has been dented and we may now see a retreat to a more anonymous form of ECB leadership. This could be good news.
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