The European Central Bank is ready to narrow the bond spreads of euro zone members if that hampers the efficiency of its policy, ECB chief economist Philip Lane said today.

Professor Lane's words rowed back on comments by the bank's president made a day earlier. 

"We will not tolerate any risks to the smooth transmission of our monetary policy in all jurisdictions of the euro area," Philip Lane said in a blog post on the ECB's website. 

"We clearly stand ready to do more and adjust all of our instruments, if needed to ensure that the elevated spreads that we see in response to the acceleration of the spreading of the coronavirus do not undermine transmission," Mr Lane added. 

The ECB provided fresh stimulus yesterday for the euro zone economy but spooked markets when it held off on cutting rates and ECB chief Christine Lagarde it was not the ECB's job to close spreads.