The European Central Bank is launching a new, expanded program to buy financial assets in a bid to calm markets roiled by the virus outbreak.
The purchases are aimed at keeping borrowing costs down and making sure the bank's low rates get through to the economy.
The bank said Wednesday that the purchases could total up to 750 billion euros ($820 billion) by the end of this year and will include government and private-sector bonds as well as commercial paper.
Office lights of the Lombardy region headquarters building in Milan, northern Italy, compose the Italian words 'State a casa' (Stay home), Wednesday, March 18, 2020. Italian authorities say too many people are violating last week's national decree, which allows people to leave homes to go to workplaces, buy food or other necessities or for brief strolls outside to walk dogs or get exercise. For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.(AP PhotoLuca Bruno)
The move comes as market borrowing costs for heavily indebted Italy rose and as the eurozone faces a drastic economic slowdown with many businesses closed. The purchases can drive down those market interest rates and reduce fears that indebted countries could get into financial trouble.
The Spanish steps are completely deserted in Rome, Wednesday, March 18, 2020. For most people, the new coronavirus causes only mild or moderate symptoms. For some it can cause more severe illness, especially in older adults and people with existing health problems. (Alfredo FalconeLaPresse via AP)