Mario Draghi, president of the European Central Bank, says the ECB has helped ensure that reductions in interest rates reach the broader economy through its vow to purchase government bonds. "Our measures gave breathing space from markets driven by panic, which were forcing the economy into a position where inappropriately high interest rates would make default a self-fulfilling prophecy," Draghi said. "Today, we are seeing some encouraging signs of tangible improvements in financial conditions. Spreads in sovereign- and corporate-debt markets have narrowed considerably."
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