ECB's Lagarde didn't say much earlier but just take note of her sole policy comment

Author: Justin Low | Category: Central Banks

ECB president, Christine Lagarde, did not specifically touch on policy earlier but made a legal interjection to OMTs


Her remark on the matter:

"OMT is there, but was never used. Yet was validated by the courts. So if the lawyers are happy with it, we should all be happy."
In case you need a reminder, the OMT programme was announced by her predecessor, Mario Draghi, at the peak of the euro area debt crisis back in 2012.

Back then, the mere threat of the OMT programme proved to be enough in providing calm during the crisis and so it was never used.

Throughout the years though, there have been disputes over the legality of the OMT programme but the ECJ has ultimately determined it to be a legal policy instrument.

ForexLive
I'm not sure what's the context of Lagarde bringing this up now but it could perhaps be a hint that under her tenure, nothing should be ruled out just yet. It could also be a harmless remark at the end of the day but regardless, it's best to be aware of it in any case.

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