FRANKFURT (Reuters) – ECB President Christine Lagarde overruled objections from Germany and the Netherlands to adopt a historic “no-limits” commitment to shore up the region’s economy in the face of the coronavirus meltdown, three sources told Reuters.
FILE PHOTO: European Central Bank (ECB) President Christine Lagarde gestures as she addresses a news conference on the outcome of the meeting of the Governing Council, in Frankfurt, Germany, March 12, 2020. REUTERS/Kai Pfaffenbach
The European Central Bank’s 750-billion-euro bond buying program, agreed at an emergency meeting late on Wednesday, came with a pledge to remove self-imposed “constraints” if necessary – a reference to a cap on owning more than a third of one country’s bond.
This means the stimulus could be deployed wherever it is needed most, meaning the euro zone’s central bank can ramp up purchases of bonds from Italy, easing the country’s economic plight as it suffers Europe’s worst outbreak of the…
Source news reuters.com, click here to read the full news.