FRANKFURT (Reuters) – The European Central Bank still needs to underpin “fragile” financial markets despite a substantial rebound since March, the ECB’s chief economist Philip Lane said on Friday, a day after the bank beefed up its Pandemic Emergency Purchase Programme.
“While conditions in financial markets have stabilised substantially since the PEPP announcement, the situation remains fragile,” Lane said in a blog post. “This fragility underlines the continued need for the central bank to be flexible and exercise a market stabilisation function to the extent necessary.”
(Reporting By Francesco Canepa; Editing by Balazs Koranyi)
