ECB’s Constancio: We see no need to change baseline economic scenario

ECB VP Vitor Constancio on the wires
– We have to be attentive and able to respond
– Italian referendum consequences difficult to anticipate
– Yields of Italian bonds have risen and there’s been contagion to Spain and Portugal
If the referendum does cause problems we could see the ECB ramping up purchases to stave off any volatile moves in bonds. As it is they will be loading up more bonds ahead of the Christmas holiday period anyway.