The Vice President of the European Central Bank Vitor Constancio was unable to predict how the ECB would react should the Greek people vote ‘no’ on Sunday’s referendum.
When asked, the Portuguese central banker was unable to determine whether the ECB would provide ELA towards Greek banks in such a case, but clarified that there are enough tools to limit the impact on the Eurozone. According to Mr. Constancio, interest rates in the Eurozone must remain low for an extended period of time.
Finally Mr. Constancio favored the adoption of a macroprudential policy that would emphasize the prevention of fluctuations in the financial cycle and establishing a broader macroprudential toolkit that will address the risks stemming from the shadow banking sector.
