ECB's Constancio: ECB will significantly increase the balance sheet; about €400B of ABS stock and €600B of covered bonds qualifies for asset purchases
- Economy still weak and fragile; very low inflation raises serious concerns- New measures to aim to promote credit flow into the real economy; show commitment to mandate of keeping policy very accommodative
- Not aiming to buy ABS and covered bonds mostly from banks, but purchases can also support banks on the capital side