Olli Rehn says ECB preparing stimulus package to exceed expectation

ECB stimulus packageAll measures announced on 22 April 2020 will enter into effect as soon as the relevant legal acts enter into force

Renta 4 | Olli Rehn, President of the Finnish central bank and member of the ECB board has said that the ECB is preparing a monetary stimulus package which should exceed market expectations and allow it to take on the slowdown confronting the Eurozone.

Among the measures will be a new debt purchasing programme or a cut in the deposit interest rate. In addition he has left the door open to ECB buying equities in a new programme or eliminating the existing 33% limit on sovereign debt acquired from each country. Moreover, he ha suggested the possibility of introducing a scaling in the deposit interest rate so that only some deposits would be subject to negative rates.