ECB Working on Crisis Tool If There's a Bond Blowout

The ECB is developing a crisis tool to manage bond yields in weaker eurozone economies, particularly Italy. This initiative is in response to concerns about rising sovereign debt due to the pandemic and geopolitical tensions like the Ukraine war. The ECB has been involved in large-scale asset purchases since 2015, which are now ending, increasing uncertainty. The backstop program is in early development, and its details are not yet clear. The ECB is expected to discuss economic conditions and potential policies in upcoming meetings, with significant decisions anticipated in June.

What is the primary focus of the ECB's new crisis tool?

• To increase interest rates

• To manage bond yield blowouts

• To support the banking sector

• To reduce inflation

Since when has the ECB been involved in large-scale asset purchases?

• 2020

• 2019

• 2015

• 2010

What is causing concern for policymakers regarding sovereign debt yields?

• Rising inflation

• Decreasing interest rates

• High spending during the pandemic

• Strong economic growth

When are new ECB policy decisions expected to be announced?

• In May

• In July

• In August

• In June

What is the ECB's approach to the new backstop program?

• It will be publicly announced immediately

• It will be kept confidential until needed

• It will be implemented next week

• It will be abandoned