The European Central Bank is ready to temporarily increase purchases of Italian government bonds. This can happen if the result of the referendum in the country sharply raise the debt service for the largest debtor in the Eurozone and lead to turmoil in financial markets.
The European Central Bank can use its program of quantitative easing to stabilize the Italian finances. In its monthly purchases of assets for 80 billion euros or 84.8 billion dollars, and by this move financial institution will resist further rise in Italian government bond yields after the vote.
Meanwhile the yields on Italian bonds went to a weekly bottom on Tuesday. And according to sources, the scheme of the European Central Bank is flexible enough to allow for a temporary increase of the Italian purchases.
The Management Board of the financial institution will decide during the meeting, to be held on the eighth of December. The meeting will involve whether to keep buying bonds after March.
The most important is European Central Bank to ensure that instability can be overcome by this flexibility and by the quantitative easing program.
more recommended stories
House Republicans Step Up Effort on Tax Bill
In a year of legislative disappointments,.
Lies, Damned Lies, and Statistics: Phil Gramm and Michael Solon Edition
The popular aphorism that is commonly.
No More Easy Choices: The Death of the Phillips Curve?
“An economist is someone that will.
Stanley Fischer Resigns from Federal Reserve
Stanley Fischer is retiring from the.
Australia Q2 GDP Growth at 1.8%, While Household Savings Declines
The Australian economy expanded by 1.8%.
Swiss Inflation Perks Up in August
Prices in Switzerland increased by 0.5%.
Boeing Scores Major Victory Over Rival Airbus
Seattle based Boeing won a major.
Moody’s Sharply Revises Polish Growth Forecasts Higher
New York based credit rating agency.
Czech Growth Revised Upward to 4.7%
GDP growth in the Czech Republic.
Q2 Italian Growth Improves While Spanish Growth Tapers
Italian economic growth came in at.