MNI BRIEF: No Comment On France, ECB Has Tools -Lagarde

ECB President Christine Lagarde would not be drawn on the political fiscal and financial issues facing France following the lost vote of confidence and resignation of the former French Prime Minister Francois Bayrou this week.

Speaking at the ECB's latest post-policy decision press conference, Lagarde said "I’m not commenting on any particular country, but suffice to say we always monitor market developments and euro area sovereign bonds are orderly and are functioning smoothly with liquidity.” 

Lagarde noted that the ECB's focus is on stability, which is needed for a functioning monetary policy transmission, and added that the Governing Council had all the necessary tools if needed.

The earlier policy statement again recalled that the Transmission Protection Instrument "is available to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across all euro area countries.”