European Central Bank President Christine Lagarde underscored on Monday that there "is no tradeoff" between price stability and financial stability.
Speaking before the European Parliament's Committee on Economic and Monetary Affairs, Lagarde explained that although the primary objective of the central bank is price stability, "we all know that price stability goes with financial stability and they are both important and come together."
She further noted that both stabilities are impacting the economic situation, but each should be tackled by "different tools." Lagarde reiterated that the ECB has all the tools necessary to address "financial stability tensions."
