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		</div><p>The European Central Bank (ECB) is deploying new stimulus measures to cushion the economic pain inflicted by the coronavirus outbreak.</p>
<p>The central bank for the 19 countries that use the euro decided to buy up to 120 billion euros (£106 billion) more in bonds this year.</p>
<p>The money is newly created and injected into the financial system.</p>
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<p>It comes on top of purchases worth 20 billion euros (£17.7 billion) a month it is already carrying out.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
<p lang="en" dir="ltr">Press release: ECB Banking Supervision provides temporary capital and operational relief in reaction to coronavirus <a href="https://t.co/HdwWoyb8um">https://t.co/HdwWoyb8um</a></p>
<p>&mdash; European Central Bank (@ecb) <a href="https://twitter.com/ecb/status/1238085802359435264?ref_src=twsrc%5Etfw">March 12, 2020</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>The ECB is also providing additional cheap, long-term loans to banks to make sure they have the liquidity they need, and will temporarily ease some capital requirements for banks to help them keep lending.</p>
<p>It is all aimed at helping businesses get the financing they need and stimulating activity to offset the downturn from all the closures and restrictions due to the virus outbreak.</p>
<p>The central bank did not cut interest rates as many analysts had expected.</p>
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<p>Rates are already low and economists have said deeper cuts might not help much.</p>
<p>The move comes as the eurozone is forecast to slide into recession and financial markets keep falling over concerns about the virus outbreak’s hit to the economy.</p>
<p>Concerns deepened after the US decided to halt travel from 26 European countries.</p>
<p>The bank’s policy meeting was held without several members of the 25-seat governing council physically present and participating by remote conferencing.</p>
<figure id="attachment_151650" aria-describedby="caption-attachment-151650" style="width: 600px" class="wp-caption aligncenter"><img class="size-full wp-image-151650" src="https://londonglossy.com/wp-content/uploads/2020/03/DEF2CDA3-4648-493B-A177-D1CB32F2A893.jpeg" alt="" width="600" height="450" /><figcaption id="caption-attachment-151650" class="wp-caption-text">The Spanish Steps in Rome, Italy</figcaption></figure>
<p>Italian central bank head Ignazio Visco is among them since his country, so far the hardest hit in Europe by the virus outbreak, has restricted movement.</p>
<p>The central bank governors of Portugal, Latvia, Lithuania and Estonia also took part remotely.</p>
<p>Economists say the impact of the virus outbreak is difficult to address with monetary policy, since it first and foremost deals a shock to the supply of goods and services.</p>
<p>Monetary policy is better equipped to stimulate demand, not supply, by making credit more widely available.</p>
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<p>Central bank action is aimed at limiting the damage from knock-on effects of business interruption.</p>
<p>More abundant and targeted credit could help businesses get through a period of interruption without going out of business.</p>
<p>The Bank of England cut its key benchmark to 0.25% from 0.75% on Wednesday, and the US Federal Reserve cut its benchmark by a half-percentage point to 1.0-1.25% on March 3.</p>
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