The ECB Adds €600 Billion to the PEPP Programme

• Adds €600 billion to PEPP, extends program to at least June 2021
• Says that it will conduct PEPP purchases in a flexible manner
• Says that rates will stay at present or lower levels until it nears inflation target
• Reaffirms that it stands ready to adjust all instruments as appropriate
• Expects QE to run for as long as necessary to reinforce accommodative rates impact

The forward guidance pretty much reads the same but the ECB certainly delivered on expectations with regards to PEPP.

In essence, this shows that they are committed to keep the economic recovery going as they boost the program by €600 billion (expectation was €500 billion) and extend it to the middle of next year. The ECB did not go as far to include junk bonds in the program though.