Lagarde reiterated the European Central Bank's stable stance, TPI tool on standby to address tariff shocks.

European Central Bank President Christine Lagarde reaffirmed the bank's commitment to intervene to maintain market stability. Lagarde said, "The European Central Bank is closely monitoring market dynamics and is always ready to use existing tools. In the past, we have timely introduced necessary appropriate tools and measures to ensure price stability - of course, including financial stability, as the two are closely linked." At a press conference following a meeting with Eurozone finance ministers, Lagarde mentioned that the European Central Bank will maintain a silence period of one week before the rate decision on April 17, and refused to comment on monetary policy. The European Central Bank has never used its crisis response tool - the Transmission Protection Mechanism (TPM), which allows bond purchases when the European Central Bank's policy transmission faces threats from disorderly market dynamics. The mechanism was created during the turbulence in the Italian bond market in 2022. "We are carefully monitoring all market fluctuations," Lagarde stated. The previous week, uncertainty over US trade tariff policies caused significant market turbulence. She added, "We do observe a certain level of volatility, but in Europe - especially in the Eurozone - we note that market infrastructures and operating mechanisms, including bond markets, are still functioning orderly."