“After the Credit Suisse crisis, the ECB has something to worry about.” Expert opinion

Behind the tranquility of Lagarde who goes straight on raising interest rates there are hidden fears. “The reversal of monetary policies can put the most fragile financial positions under stress”, says economist Brunello Rosa

“The ECB wanted to give the impression that it was not concerned about Europe’s exposure to the American bank crashes and the Credit Suisse crisis. It has drawn a dividing line between the Eurozone and other areas where the rules of the game for banks are less strict. In reality, when she announced her intention to raise rates by 50 basis points weeks ago, her hands were somehow tied. If it had failed to fulfill its commitment at a time when there is turbulence in the markets it would have been seen as a warning sign. I believe that, behind the apparent tranquillity, there is concern in Frankfurt, and how”. The Economist Brunello Rosawho teaches at the London School of Economics and is a partner of Nouriel Roubini in the independent research and consultancy firm “Rosa&Roubini Associates”, has just finished following Christine Lagarde’s press conference and is about to enter the classroom for a lesson.