Marketing

ECB launches €750bn emergency bond purchasing programme


The European Central Bank has announced a massive €750 billion programme of bond buying after a late night emergency phone conference of its governing council. The move is to try to fight off pressures emerging in euro-zone government bond markets and prevent a new financial crisis taking hold.

In a tweet after the meeting, ECB president Christine Lagarde said it intended to use all its tools to defend the euro as “there are no limits” to its commitment to the single currency.“Extraordinary times require extraordinary action,” Lagarde tweeted. “There are no limits to our commitment to the euro. We are determined to use the full potential of our tools, within our mandate.”

The ECB move, its second in a week in response to the crisis, aims to hold down government bond interest rates, particularly those in countries worst affected by the crisis, notably Italy. The move initially boosted the euro and led to a rise in Asian markets and in US equity futures, which give an indication of how the US markets will trade at the next session. There will be close attention to the reaction in European markets on Thursday morning as analysts and investors pick through the detail.



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