15-Jun (Financial Times) — The European Central Bank is on standby to keep banks flush with liquidity if Greece creates fresh financial market turmoil, its president has indicated, joining a global chorus of central bankers pledging support ahead of Sunday’s elections.
Mario Draghi’s comments on Friday followed the announcement by the UK’s central bank of plans to pump £100bn into the ailing British economy, hinting at a co-ordinated strategy by the world’s top central bankers.
“The ECB has the crucial role of providing liquidity to sound bank counterparties in return for adequate collateral. This is what we have done throughout the crisis … and this is what we will continue to do,” Mr Draghi said.
PG View: Draghi echos talk that a coordinated central bank plan is in place to counteract any market turmoil resulting from the weekend elections in Greece and France.