ECB prepares for more stimulus, hints at junk bond buys

The European Central Bank tweaked policy around the edges on Thursday but kept the door wide open to further stimulus — including potentially controversial purchases of junk debt — to help an economy ravaged by the coronavirus pandemic.

Facing an unprecedented recession, the ECB said it would make loans to banks even cheaper but kept the terms of its hallmark asset purchase scheme unchanged, disappointing investors who had bet on even more money-printing.

Lockdowns in place across Europe to curb the spread of the virus have already cost millions their jobs and governments are borrowing record amounts just to keep their economies going until restrictions on businesses and households can be eased.

ECB President Christine Lagarde made clear the central bank for the 19 countries that use the euro currency would do its part but said political leaders must agree on...