After an emergency meeting, the ECB has decided don and has announced a €750 billion pandemic emergency purchase programme (PEPP).
There has been no reaction on the EUR thus far.
Key notes
- ECB SAYS TO LAUNCH A NEW TEMPORARY ASSET PURCHASE PROGRAMME OF PRIVATE AND PUBLIC SECTOR SECURITIES TO COUNTER THE SERIOUS RISKS TO THE MONETARY POLICY TRANSMISSION MECHANISM
- 18-Mar-2020 16:49:03 – ECB SAYS PURCHASES WILL BE CONDUCTED UNTIL THE END OF 2020 AND WILL INCLUDE ALL THE ASSET CATEGORIES ELIGIBLE UNDER THE EXISTING ASSET PURCHASE PROGRAMME
- 18-Mar-2020 16:49:11 – ECB 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.
- 18-Mar-2020 16:49:13 – ECB SAYS TO THE EXTENT THAT SOME SELF-IMPOSED LIMITS MIGHT HAMPER ACTION THAT THE ECB ISREQUIRED TO TAKE IN ORDER TO FULFIL ITS MANDATE, THE GOVERNING COUNCIL WILLCONSIDER REVISING THEM TO THE EXTENT NECESSARY
- 18-Mar-2020 16:49:16 – ECB SAYS AT THE SAME TIME, PURCHASES UNDER THE NEW PEPP WILL BE CONDUCTED IN A FLEXIBLE MANNER. THIS ALLOWS FOR FLUCTUATIONS IN THE DISTRIBUTION OF PURCHASE FLOWS OVER TIME, ACROSS ASSET CLASSES AND AMONG JURISDICTIONS.
- 18-Mar-2020 16:49:23 – ECB SAYS A WAIVER OF THE ELIGIBILITY REQUIREMENTS FOR SECURITIES ISSUED BY THE GREEK GOVERNMENT WILL BE GRANTED FOR PURCHASES UNDER PEPP.
- 18-Mar-2020 16:49:30 – ECB SAYS THEGOVERNING COUNCIL IS FULLY PREPARED TO INCREASE THE SIZE OF ITS ASSET PURCHASEPROGRAMMES AND ADJUST THEIR COMPOSITION, BY AS MUCH AS NECESSARY AND FOR AS LONGAS NEEDED
- 18-Mar-2020 16:49:33 – ECB SAYS 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
- 18-Mar-2020 16:49:42 – ECB 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
- 18-Mar-2020 16:49:51 – ECB 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
More to come…
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