Nagel lays out conditions for ECB anti-fragmentation instrument

Bundesbank president says it should be temporary and only used in “exceptional circumstances”

Joachim Nagel
Joachim Nagel
Photo: Deutsche Bundesbank/Nils Thies/Flickr

Joachim Nagel, Deutsche Bundesbank president, said the European Central Bank could tackle widening sovereign spreads between eurozone member states “only in exceptional circumstances”.

In a speech on July 4, Nagel restated his view that the ECB should squarely focus on bringing inflation back to the 2% target. He laid out “narrowly defined conditions” for future asset purchases.

As the ECB announced the end of all net asset purchases after its monetary policy meeting on June 9, and indicated

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