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Economics

The ECB’s new lending programmes — and why investors were disappointed

The central bank wants to encourage banks to lend to consumers

Christine Lagarde, President of the European Central Bank
Christine Lagarde, President of the European Central Bank Photo: Getty Images

Banks led a decline in European stocks on 30 April after the European Central Bank wheeled out a complex basket of measures to help navigate the region’s economy through a protracted recession brought on by the coronavirus pandemic.

The euro briefly dropped against the US dollar, before reversing course to gain 0.6%. Italian government debt was similarly volatile in the hour following the announcement.

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