"If, for example, banks start to apply a larger 'intermediation wedge' – meaning that at any level of the base rate they demand a higher compensation for the perceived risk they are taking on when lending – then pass-through will become stronger," Lagarde said. (Reporting By Francesco Canepa; Editing by Toby Chopra)
004906975651247; Reuters Messaging: francesco.canepa.thomsonreuters.com@reuters.net)) FRANKFURT, March 22 (Reuters) - The European Central
Bank's interest rate increases are just starting to take effect
on the economy but their transmission may become stronger as a
result of the banking turmoil, ECB President Christine Lagarde
said on Wednesday.
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