ECB Vice-President Luis de Guindos said today “fragmentation is a significant worry.” The central bank is ” speeding up process to ready a tool against fragmentation,” but the governing council has “still not discussed the details yet”.
But he emphasized, “fragmentation instruments should not interfere with the overall monetary policy approach, which should be focused on fighting inflation.” Also, the new tool should be different to previous PEPP, APP or OMT programs as “circumstances are not the same.
