ECB has no plans to deploy OMT emergency bond purchase scheme

The European Central Bank is not planning to deploy its OMT emergency bond purchase scheme to fight the coronavirus crisis, Reuters reported on Thursday, citing two sources familiar with the matter.

The ECB sees €750 billion Pandemic Emergency Purchase Programme (PEPP) as a more powerful crisis tool, one of the sources told Reuters. "The shock we face now is nothing like what OMT was designed for. It's not appropriate in the current circumstance."

Market reaction

The EUR/USD pair edged lower slightly on this headline and was last seen trading at 1.0960, adding 0.75% on the day.