European Central Bank increases bond-buying stimulus program by 500 billion euros, extends duration to March 2022

FRANKFURT, Germany (AP) — The European Central Bank has added a large dose of economic stimulus as a winter wave of rising COVID-19 infections shuts down large parts of the economy and hurts Christmas sales revenues. The central bank is buying half a trillion euros more bonds, equivalent to $600 billion. That pumps newly created money into the economy and keeps borrowing costs low for cast-strapped businesses and governments. The European Central Bank announced the new stimulus after its policy meeting on Thursday. Bank President Christine Lagarde says policymakers must keep support coming for businesses so that viable firms don’t go bust before vaccines can help usher in a lasting recovery.