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...