Spain says ECB’s tool to control government bond spreads are ‘appropriate’

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FILE PHOTO: Illumination at ECB headquarters for the Euro's 20th anniversary in Frankfurt, Germany

MADRID – Spain’s Economy Minister Nadia Calvino said that the European Central Bank’s tools to try to keep government bond spreads down are adequate.

“The tools the ECB is using right now and has announced it will keep on using are appropriate for now,” she said in an interview on TVE station.

The ECB announced on Thursday its new Transmission Protection Instrument (TPI), which will let it buy bonds from indebted countries such as Italy to cap any excessive rise in their borrowing costs, helping limit financial fragmentation within the euro zone.

Calvino added that she expected inflation, which is running at its highest rate in three decades, to remain high in Spain in July.

(Reporting by Inti Landauro and Emma Pinedo; editing by Jesús Aguado)