ECB's de Guindos: If we see that inflation expectations start to deanchor, we will act

Further comments by de Guindos

• There could be a combination of actions to restore inflation path
• Says that ECB is open to react to any situation
• Risks are tilted to the downside; if they start to materialise, ECB will act accordingly

The good news for the ECB is that since Draghi's dovish remarks yesterday, the market has grown more confident about the central bank being able to work towards its inflation target. Well, for now at least...

Note the sharp bounce higher over the past two days