ECB will act with ‘cool head’ on market volatility, Kazaks says

The ECB will have to make sure that countering so-called fragmentation in markets doesn’t undermine its main goal of battling inflation, currently four times its 2% goal. Picture: Alex Kraus/Bloomberg

The European Central Bank is ready to combat unwarranted financial-market moves but must also be prepared to look through turbulence as it exits negative interest rates, Governing Council member Martins Kazaks said.

“If action is going to be necessary, we will be on top of it,” Kazaks, the Latvian central bank governor, said in an interview in Riga. “It is natural to see some increased uncertainty and volatility. We need to live through this situation with a cool head and steady hand showing to the market, what’s our direction.”