“The Governing Council decided to increase the envelope of the pandemic emergency purchase programme (PEPP) by €500 billion to a total of €1,850 billion. It also extended the horizon for net purchases under the PEPP to at least the end of March 2022. ” – ECB Press Release. Dec. 10, 2020
Stimulus
Central Banks Step Up $5.6 Trillion Bond Binge Despite Doubts (Bloomberg)
“Global central banks are embarking on fresh waves of bond-buying to fight the fallout from the pandemic, despite mounting claims that the once-mighty policy is losing its power to boost the economy.” – by Carolynn Look
ECB policymakers open to more stimulus, if needed (Reuters)
“ECB board member Isabel Schnabel argued that raising inflation will be key and failure to get price growth in the 19-country euro zone moving towards the ECB’s target could be the trigger for action.”
Germany’s Angela Merkel unveils stimulus package to kickstart economy (Deutsche Weld)
“Chancellor Angela Merkel said Wednesday that Germany was set to plow 130 billion euros ($146 billion) into rebooting an economy severely hit by the coronavirus pandemic. The measures include temporarily cutting value-added tax form 19% to 16%, providing families with an additional €300 per child and doubling a government-supported rebate on electric car purchases.”
ECB announces €750 billion Pandemic Emergency Purchase Programme (ECB)
“This new Pandemic Emergency Purchase Programme (PEPP) will have an overall envelope of €750 billion. Purchases will be conducted until the end of 2020 and will include all the asset categories eligible under the existing asset purchase programme (APP).” – ECB Governing Council