European Central Bank announces €750bn bond purchase scheme
Thursday, 03 19 2020, Category: Economy, Country: Europe
The European Central Bank on Wednesday announced a surprise €750 billion scheme to purchase government and corporate bonds.
It comes as it joined other central banks in stepping up efforts to contain the economic damage from the coronavirus.
The so-called Pandemic Emergency Purchase Programme comes just six days after the ECB unveiled a big-bank stimulus package that failed to calm nervous markets, piling pressure on the bank to open the financial floodgates.
The asset purchasing scheme will be temporary and be concluded once the bank "judges that the coronavirus Covid-19 crisis phase is over, but in any case, not before the end of the year", it said in statement.
The decision came after the bank's 25-member governing council held emergency talks by phone late into the evening.
The ECB said it was "committed to playing its role in supporting all citizens of the euro area through this extremely challenging time".
"The governing council will do everything necessary within its mandate," it said, adding that the size of the asset purchases could be increased if needed.