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“We are experiencing a major economic shock,” told Isabel Schnabel, Member of the Executive Board of the European Central Bank, to Die Zeit newspaper and reiterated that the ECB is ready to act quickly if necessary.  

“It seems like all market participants have understood the components of the ECB’s asset purchase programme,” Schnabel added. “The ECB is prepared to do everything within its mandate to counter the market turmoil.”

EUR/USD reaction

The EUR/USD pair largely ignored these comments and was last seen trading at 1.1010, adding 0.12% on the day.

Additional takeaways

“Likelihood of a recession significantly increased.”

“We are watching current situation very closely to be able to react quickly to new developments.”

“The ECB is looking closely at credit markets for companies and governments.”

“We need European solidarity, including financially.”

“Monetary policy cannot solve this crisis alone.”