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For ECB, the timing of Italian referendum and its outcome could not have come at a worse time, just days ahead of the all-important December meeting. On the menu of this meeting are the extension and tweaks to the quantitative easing (QE) program.

"We expect the ECB to extend its asset purchases at the same pace through September 2017 while dropping the restrictions on not being able to purchase assets yielding below the depo(ist) rate and below a 2-y(ear) maturity," writes Nick Kounis, Head of Macro and Financial Markets research at ABN Amro, in a note.

The ECB is trying to push inflation back to its goal of below but close to 2 percent with measures and instruments to spur lending and the buying of bonds. While inflation is still low compared to the bank's target, it is at least moving in the right direction.

Reference: CNBC