ECB Expands Bond Buying Amidst Coronavirus Resurgence

European Central Bank (ECB)
European Central Bank (ECB)

The European Central Bank (ECB) expanded its monetary stimulus program in December by an additional 500 billion euros ($605 billion). This occurred as the ongoing second wave of lockdown measures loomed over the continent's economic recovery.

Markets largely expected the central bank to expand its bond-buying. In October, the ECB promised to "recalibrate its instruments" as a rise in coronavirus cases across the Continent led to more national shutdowns.

The ECB kept interest rates on its main refinancing operations, marginal lending facility and deposit facility at 0.00%, 0.25% and -0.50% respectively.

The central bank introduced its Pandemic Emergency Purchase Programme (PEPP) earlier in 2020 as an attempt to stabilize the euro area's economy in the wake of the pandemic. Follow...

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