Economics
ECB Goes All Out With 600 Billion Euro Increase in Bond Buying
- Emergency purchases to be increased by 600 billion euros
- Lagarde says economic improvement so far has been tepid
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The European Central Bank intensified its response to the “unprecedented contraction” facing the euro area with a bigger-than-anticipated increase to its emergency bond-buying program.
President Christine Lagarde and her colleagues decided to expand purchases by 600 billion euros ($675 billion) to 1.35 trillion euros, and extended them until at least the end of June 2021. Italian bonds rallied, with the yield on 10-year debt compared with the German equivalent set to narrow the most since mid-May. The euro reversed losses.