Lagarde Says ECB 'Closely Monitoring' Bond Yields

The transcript discusses the preservation of favorable financing conditions during the pandemic, emphasizing the importance of monitoring various indicators in the monetary policy transmission chain. It highlights the role of risk-free rates and sovereign yields as early indicators for banks setting loan prices. The ECB's monitoring of nominal bond yields is crucial, and the overall policy mix, along with national measures, is essential for firms and households to benefit fully from these conditions.

In what ways can firms and households take advantage of favorable financing conditions?

What role do national policy measures play in supporting monetary policy during the pandemic?