Further comments by Visco
- Believes adopted measures are sufficient
- But ECB is ready to do more if necessary
- ECB ready to increase size of bond purchase programme
- Also ready to change its composition and duration, where necessary
- Expansive monetary policies must be kept even when virus outbreak ends
If you're wondering what is with the comments here, it is to further soothe the market after their stimulus package last week. This is merely to reinforce the effect of their announcement and get investors to maintain the calm.
It is working to some extent as we see the yields spread between Italian and German bonds compress by quite a margin - back under 200 bps - but relative to levels seen over the past six months, it is still very much elevated.