The ECB improves the conditions of loans to banks and opens the door to more debt purchases



The European Central Bank (ECB) decided today to reduce the interest rate it applies to long-term refinancing operations by 50 basis points, down to -0.50%, from June 2020 to June 2021, but if the Banks lending a lot will reward them by giving them credits at -1%. At the same time, the issuing institute has stressed that it is "fully prepared" to increase the size of its Covid-19 pandemic asset purchase program (PEPP), currently standing at € 750 billion, "as necessary" , as well as extending it in time, what you consider appropriate.

The ECB has kept the benchmark interest rates for its refinancing operations unchanged at 0%, while the deposit facility rate will continue at -0.50% and the loan facility rate at 0.25% . .



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