ECBs Visco is on the wires saying:
- The euro zone needs to quickly have a deposit protection tool like the one in the US
- Regulators have all the tools to face a liquidity issues that may arise
- Eurozone banks do not have liquidity or capital issues; faces contagion risks
- Reiterates ECB's 2% inflation target
- Monetary policy will count for the fact that the current situation will impact on lending and cost of capital
The ECB raised rates by 50 basis points last week. Lagarde paved a framework that the Fed may (or may not) follow:
- Stress that banks are in good shape
- stress that the central bank has different tools to address financial risks and monetary policy risks and they are different
- Inflation remains a risk
- Backoff promises or needs for future hikes
- Stress that the central bank is data dependent
