Big stimulus measures announced by the ECB last night following an emergency meeting.
Will this help stabilise the wild action we’ve been seeing this week?
- €750 billion pandemic emergency purchase programme (PEPP)
- a new temporary asset purchase programme of private and public sector securities to counter the serious risks to the monetary policy transmission mechanism
- purchases will be conducted until the end of 2020 and will include all the asset categories eligible under the existing asset purchase programme
- says for the purchases of public sector securities, the benchmark allocation across jurisdictions will continue to be the capital key of the national central banks.
- the governing council will terminate net asset purchases under PEPP once it judges that the coronavirus covid-19 crisis phase is over, but in any case not before the end of the year
- says to expand the range of eligible assets under the corporate sector purchase programme (CSPP) to non-financial commercial paper, making all commercial papers of sufficient credit quality eligible for purchase under CSPP
- says the governing council of the ECB is committed to playing its role in supporting all citizens of the euro area through this extremely challenging time
$GER30 $SPX500 $FRA40 $EUSTX50 $UK100
