Bloomberg
ECB Council to Hold Emergency Meeting to Address
Market Selloff
Carolynn
Look and Antonio Vanuzzo
Wed, June
15, 2022, 7:17 AM·1 min read
(Bloomberg)
-- The European Central Bank’s Governing Council will hold an ad-hoc meeting on
Wednesday “to discuss current market conditions,” according to a spokesman for
the bank.
The
announcement comes after the yield on Italy’s 10-year debt rose above 4% for
the first time since 2014 this week, signaling that investors aren’t convinced
the ECB can raise borrowing costs and keep the bond yields of the region’s most
vulnerable members in check at the same time.
Last week,
the ECB announced that it intends to lift interest rates by a quarter-point in
July, followed by a larger hike two months later as it fights against soaring
prices. The institution hasn’t increased rates in more than a decade.
The euro
rose as much as 0.6% to 1.0475 per dollar following the announcement of the
meeting.
“The fact
that the euro is rebounding could suggest that investors are hoping to get more
details on any potential intervention to stabilize the European government bond
market,” said Valentin Marinov, strategist at Credit Agricole CIB in London.
“Euro-dollar could climb back above 1.05 in the very near term.”
The
unscheduled meeting was first reported by Italian daily Corriere della Sera.
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