Stock markets stabilize as ECB launches € 750bn coronavirus stimulus – business live – The Guardian, Theguardian.com
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Good morning, and welcome to our live coverage of economics, business and markets in the UK, the eurozone and worldwide.
The European Central Bank has become the latest to unleash a massive wave of quantitative easing in a bid to sustain the eurozone economy – which like everywhere is under huge pressure from lockdowns trying to control the coronavirus pandemic .
The initial reaction of shock and awe to the announcement made late last night dissipated quickly, but European and UK stock market futures ahead of morning trading appear to show that markets could stabilize after a period of turmoil.
There are “no limits”, ECB president Christine Lagarde said on Twitter last night.
The Governing Council will do everything necessary within its mandate. The Governing Council is fully prepared to increase the size of its asset purchase programs and adjust their composition, by as much as necessary and for as long as needed. It will explore all options and all contingencies to support the economy through this shock.
To the extent that some self-imposed limits might hamper action that the ECB is required to take in order to fulfill its mandate, the Governing Council will consider revising them to the extent necessary to make its action proportionate to the risks that we face. The ECB will not tolerate any risks to the smooth transmission of its monetary policy in all jurisdictions of the euro area.
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