European Central Bank (ECB) President Christine Lagarde speaks at a press conference at the ECB headquarters in Frankfurt, Germany, March 12, 2020. (ECB/Handout via Xinhua)
The European Central Bank expands its PEPP bond-buying program to 1.35 trillion euros.
FRANKFURT, June 4 (Xinhua) -- The European Central Bank (ECB) announced on Thursday that it decided to expand its pandemic emergency purchase program (PEPP) by 600 billion euros (673 billion U.S. dollars) to a total of 1,350 billion euros.
The horizon for net purchases under the PEPP will be extended to at least the end of June 2021, the ECB said in a statement after its monetary policy meeting. Previously the program was expected to last till the end of this year.
"In any case, the Governing Council will conduct net asset purchases under the PEPP until it judges that the coronavirus crisis phase is over," the central bank noted.
The maturing principal payments from securities purchased under the program will be reinvested until at least the end of 2022, it added.
Euro area key interest rates were kept unchanged. The eurozone base interest rate will remain at 0.00 percent, with the marginal lending rate and deposit rate remaining at 0.25 percent and minus 0.50 percent, respectively, according to the statement. ■