Lagarde says ECB is working on swap lines for euro area sovereignty
The ECB president gave no detail on which counterparts the arrangements would cover or when they might be used.
Published
European Central Bank President Christine Lagarde says the central bank is working on swap lines for euro area sovereignty. She did not specify which countries or institutions would be party to the arrangements, or what they are meant to guard against.
The comment comes as ECB officials remain split over the path for interest rates. Traders have pared bets on an October rate rise to below 40%. Lagarde has said wages show no material response to the energy shock, while separately flagging upside risks to inflation and downside risks to growth amid high uncertainty. ECB Governing Council member Boris Vujcic has said the central bank has already started a tightening cycle.
Lagarde's reference to swap line work points to contingency planning rather than immediate policy action, and keeps the ECB in the same holding pattern it has occupied for weeks. With October rate-hike odds below 40% and officials divided on timing, this operational step does not resolve the underlying question of whether tightening resumes or pauses, and it leaves market sentiment largely unchanged.