Lagarde speech: ECB continually monitors the proportionality of its instruments

"The COVID-19 pandemic and measures to contain the spread of the virus have caused an unprecedented contraction of economic activity in the euro area,"  Christine Lagarde, President of the ECB, said on Monday.

Additional takeaways

"Financial conditions are still tighter today than at the outset of the COVID-19 pandemic."

"Our decisions will make sure that higher borrowing needs by fiscal authorities associated with the necessary fiscal response to the crisis will not translate into materially higher interest rates for the private sector."

"Our crisis-related measures are temporary, targeted and proportionate."

"They are proportionate to the severe risks to our mandate that we are facing."

"ECB continually monitors the proportionality of its instruments."

"We remain fully committed to our mandate."

Market reaction

The EUR/USD pair edged slightly higher and was last seen gaining 0.28% on the day at 1.1315.