Published on Monday, March 16, 2020
Last Thursday, a day of panic across markets with plummeting stock markets and investors seeking refuge in low-risk assets, and after the World Health Organization had declared COVID-19 a global pandemic, the ECB strengthened its efforts in terms of monetary stimulus in two ways.
- Key points:
- The first measure was to ensure liquidity to financial entities at more favorable terms to keep the economy flowing for both families and companies.
- The ECB improved conditions so that banks can request more liquidity under the TLTRO-III program at a lower cost and with eased conditions.
- The second measure was to substantially increase the current assets purchases (QE) program by EUR 120 billion this year, in addition to the existing EUR 20 billion.
Documents to download
Sonsoles__Castillo__Miguel_Jimenez_La-reaccion_del_BCE_Expansion_WB.pdf Spanish March 16, 2020