ECB’s Lagarde: European Bond Markets ‘Functioning in an Orderly Fashion’

11 April 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank President Christine Lagarde said on Friday that the ECB was monitoring financial market developments but that these were functioning in an ‘orderly’ way.

In a press conference after a Eurogroup meeting in Warsaw, Lagarde said that the ECB was ‘monitoring all market developments, and what we have observed recently of course is a degree of volatility.’

Market infrastructures, including the bond market, were ‘functioning in an orderly fashion’, she said.

Asked if she was aware of any Federal Reserve intervention and if the ECB was involved in any way, Lagarde said that the two institutions communicate regularly but that ‘if I was aware of any such thing as you asked, I wouldn’t tell you.’

The ECB was paying attention to how the exchange rate could impact on inflation, she said.

‘So, this is factored into the assumption and calculations we make and the models that we are working on on a very regular basis at the moment’, she said.

Given the current environment, the ECB was ready to use its tools, according to Lagarde, who also recalled that the central bank had in the past come up with the necessary instruments to ‘procure price stability and of course financial stability, because one doesn’t go without the other.’