ECB drops bond-holding limits for crisis response
€750bn stimulus programme will not be subject to previous limits on holding countries’ bonds
The European Central Bank has dramatically increased the scope of the €750 billion Pandemic Emergency Purchase Programme (PEPP) it unveiled last week, removing self-imposed limits on how many bonds it can hold from individual countries.
The ECB’s governing council announced the changes in a legal decision published late on March 25.
“Purchases under the PEPP shall be conducted in a flexible manner, allowing for fluctuations in the distribution of purchase flows over time, across asset classes
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