Preserving favorable financing conditions over the pandemic period remains essential to reduce uncertainty and bolster confidence, thereby underpinning economic activity and safeguarding medium-term price stability, ECB President Lagarde said at a press conference on Thursday.
The central bank said last month it was going to increase government bond purchases though still within the planned envelope of 1.85 trillion euros ($2.2 trillion) until March 2022 to address rising bond yields in the euro zone. At the time, the ECB expressed concerns with borrowing costs rising sharply for euro area governments before the economy has fully recovered from the coronavirus shock.
As a result, data from Deutsche Bank showed the ECB purchased 74 billion euros in bonds in March, up from 53 billion and 60 billion euros in February and January.
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