ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP)

Summary:

The Governing Council of the European Central Bank (ECB) announced on 18 March 2020 the launch of the Pandemic Emergency Purchase Programme (PEPP), a temporary asset purchase programme of private and public sector securities to counter the risks to the monetary policy transmission mechanism and the outlook for the Eurozone posed by the coronavirus outbreak and related crisis.

Further information:

The PEPP is to have an overall envelope of €750 billion. Purchases are to be conducted until the end of 2020 and are to include all the asset categories eligible under the existing asset purchase programme (APP). The Governing Council is to terminate net asset purchases under PEPP once it judges that the COVID-19 crisis is over, but in any case not before the end of 2020.

Official

ECB: Blog, 19/03/2020: Our response to the coronavirus emergency (by Christine Lagarde) https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200319~11f421e25e.en.html

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News

BBC News, 19/03/2020: Europe sets up emergency lifeline worth billions https://www.bbc.co.uk/news/business-51955389

EUObserver, 19/03/2020: ECB promises (almost) whatever it takes https://euobserver.com/coronavirus/147808

Reuters, 19/03/2020: ECB's Panetta says new bond purchase programme shows strong commitment to help EU https://uk.reuters.com/article/idUKKBN2162M5

The Guardian, 19/03/2020: ECB U-turn shows it fears coronavirus could destroy eurozone project https://www.theguardian.com/world/2020/mar/19/ecb-u-turn-shows-it-fears-coronavirus-could-destroy-eurozone-project

RFI News, 19/03/2020: ECB's monetary bazooka peps up Asian stocks http://www.rfi.fr/en/wires/20200319-ecbs-monetary-bazooka-peps-asian-stocks

France24, 19/03/2020: ECB launches €750 billion bond buyback for coronavirus-hit eurozone https://www.france24.com/en/20200318-european-central-bank-ecb-stimulus-package-bond-buyback-coronavirus-pandemic-christine-lagarde

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Commentary and Analysis

Bloomberg, 19/03/2020: Christine Lagarde Is Third-Time Lucky https://www.bloomberg.com/opinion/articles/2020-03-19/the-ecb-finally-acts-like-the-coronavirus-crisis-is-pan-european

Bloomberg, 20/03/2020: ECB Undid a Fail But Left Collateral Damage https://www.bloomberg.com/opinion/articles/2020-03-20/ecb-undid-a-fail-but-left-collateral-damage

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