FRANKFURT (Reuters) – The European Central Bank said on Thursday it would pay more to banks to borrow from, but preferred not to exhaust other policy instruments at its disposal as it prepared for a prolonged battle with the fallout from the Corona virus.
After unveiling a series of stimulus measures over the past six weeks, including plans to buy 1.1 trillion euros of bonds this year, the European Central Bank said it would pay 0.50 percent to banks if it borrowed in its bids each year and 1 percent if banks re-pumped that cash into Economy.
Analysts expect the central bank to increase its target for annual bond purchases this year and to add high-risk bonds to it in the coming months as part of its efforts to support the euro zone in the face of an expected wave of credit ratings cuts.
FRANKFURT (Reuters) – The European Central Bank said on Thursday it would pay more to banks to borrow from, but preferred not to exhaust other policy instruments at its disposal as it prepared for a prolonged battle with the fallout from the Corona virus.
After unveiling a series of stimulus measures over the past six weeks, including plans to buy 1.1 trillion euros of bonds this year, the European Central Bank said it would pay 0.50 percent to banks if it borrowed in its bids each year and 1 percent if banks re-pumped that cash into Economy.
Analysts expect the central bank to increase its target for annual bond purchases this year and to add high-risk bonds to it in the coming months as part of its efforts to support the euro zone in the face of an expected wave of credit ratings cuts.