Lagarde faces greatest challenge yet as ECB battles the bond market
The European Central Bank supremo has a tough task returning the struggling eurozone economy to the right track
Crunch time is here for Christine Lagarde.
The President of the European Central Bank faces an unenviable cocktail of economic and financial risks, and must respond convincingly at tomorrow’s policy meeting.
The euro has fallen back against the dollar, potentially adding to inflationary pressure.
Borrowing costs are rising in financial markets, spurred on by US President Joe Biden’s mega-stimulus spending package, hitting indebted governments and businesses.
So far the ECB has not increased the pace of bond purchases in response, making market-watchers twitchy.