© Reuters. FILE PHOTO: European Central Bank Governing Council member Ignazio Visco looks on as I give an interview to Reuters in Rome, Italy, May 31, 2021. REUTERS/Guglielmo Mangiapane
FRANKFURT (Reuters) – European Central Bank policymaker Ignazio Visco said on Thursday that the European Central Bank needs to see signs of “panic” in bond markets to start its debt-buying program, days after Italy’s risk premium to Germany rose.
“The current distance and the way it develops do not require substantial turbulence or disorder,” Vesco, who is also the governor of Italy’s central bank, said of Italian bond spreads, currently around 245 basis points.
“That’s key: If tomorrow we start seeing 250, 55, 60 and so on — that[means]there’s a panic in the market, we’ll take action and remove the panic.”
(This story corrects a quote in the last paragraph after the Bank of Italy clarified that Visco meant “kill the panic” and not “kill the market”)