Frankfurt, Germany — The European Central Bank (ECB) sees a gradual reabsorption of central bank liquidity after it flushed the markets with excess monetary funds to shore the eurozone up against economic shocks stemming from the pandemic and the war in Ukraine.
The banking channel of monetary policy seems intact, Philip R. Lane, Member of the ECB’s rate-setting Executive Board Thursday told an online seminar on “Monetary Policy and Banks’ Business Strategies”, organised by the Florence School of Banking and Finance as part of the Bank Board Academy.