ECB’s De Guindos: The central bank is flexible to act if yields surge undermine financing conditions

“We will have to see if the increase in nominal yields will have a negative impact on financing conditions,” the European Central Bank (ECB) Vice President Luis De Guindos said in an interview with Público on Tuesday.

Further comments

“If so, we are open to recalibrate our programme.”

“Recent rise in yields is partly due to higher inflation expectations in the US.”

“That includes the PEPP envelope, if necessary.”

“We have the flexibility that is needed in order to react.”