ECB’s Lagarde Says Bond Buying, Bank Liquidity Remain Key Policy Tools

The video discusses the importance of secure policy transmission and the need for firms to have access to credit. It emphasizes the significance of maintaining favorable financing conditions, not just in terms of levels but also duration, to support economic confidence. Current economic measures, including negative yield curves and low lending rates, are highlighted. The Governing Council's commitment to ensuring favorable conditions to counteract the pandemic's impact is outlined, with future projections and monetary policy tools being discussed as adaptable to evolving situations.

What is the significance of maintaining favorable financing conditions in the context of the pandemic?

How can monetary policy tools be adjusted in response to the evolving pandemic situation?