The European Central Bank (ECB) tried to calm fears of a debt crisis following an emergency policy meeting on June 15 by promising “flexibility” while managing its huge balance sheet, as well as creating a new tool to tackle the risk of eurozone bond fragmentation.
During a meeting the previous week, the ECB stated that it planned to raise rates by 25 basis points in July to tackle inflation, its first such hike in 11 years. A bigger hike in September could follow if necessary, the ECB said, while adding that it would stop buying European government bonds.
