ECB pledges flexibility in buying bonds

The European Central Bank held an emergency meeting on Wednesday following a spike in borrowing costs. The members of the governing council decided to be more flexible in buying government bonds.
They apparently want to ease stress on some countries, including Italy and Spain.

The ECB is set to raise its policy rate in July for the first time in 11 years. Officials are tackling record-high inflation. The announcement has led to a sell-off of government bonds in heavily indebted countries.

Like other central banks, including the US Federal Reserve, the ECB faces the tricky job of tightening policy without damaging the economy. The fear in Europe is that aggressive rate hikes could trigger a financial crisis like the one in Greece in 2009.