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ECB will not apply issuer limit in new crisis fighting QE
The European Central Bank will not apply its self-imposed purchase limits on a 750 billion euro ($818 billion) coronavirus crisis-fighting bond purchase scheme, it said in a legal text, opening itself to new court challenges.Bond buys were previously capped at 33% of each country’s debt but the ECB said that under the temporary Pandemic Emergency Purchase Programme (PEPP), these will not apply. This may present the ECB a fresh challenge as the European Court of Justice specifically pointed to these limits in a late 2018 ruling when it argued that the ECB was not breaching a prohibition of monetary financing. “The ... (full story)