ECB's Nagel: I'm confident that TIP could withstand legal challenges

Bundesbank leader Joakim Nagel says he's confidence yesterday's newly-unveiled Transmission Protection Instrument could survive legal challenges.

There are laws against monetary financing that have been challenged before and I'm sure this program will be challenged as well. It hinges on the ECB assessment that debt is 'sustainable' but who are they to say?

Eventually it will be used to buy debt that ultimately defaults. How could that be anything other than monetary financing?

More:

• Rate increase in the future will depend on data
• We still expect favorable growth in 2022 and 2023

The market had been fully pricing in 50 bps in September but is not pricing in 38 bps, which is almost an even split between 25 or 50 bps.

/EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term