The European Central Bank (ECB) shall maintain interest rates as expected. However, the central bank is increasing its buy-in programme to stimulate the euro area economy, which is hit by the second wave of coronaries. The ECB is now spending an extra EUR 500 billion on this, bringing the total amount of the buy-back programme to EUR 1850 billion. The maximum duration of the buy-up programme will also be extended to March 2022 at the latest. The ECB claims to keep making new purchases until it judges that the coronacrisis is over. The money already spent will be re-invested in the economy until at least the end of 2023 when bonds are paid off. The ECB is also extending a programme whereby banks can borrow money from the central bank at very favourable interest rates. Banks can also borrow more money on these terms. In the ECB ‘ s view, the uncertainty for the economy caused by the coronavirus remains high. The timing and pace of vaccination also contribute to this uncertainty. The central bank wants to ensure that credit remains available to all sectors of the economy. In this way, economic activity must be maintained, but also price stability.
