ECB fires off stimulus to counter virus 'major shock'

European Central Bank chief Christine Lagarde warned on Thursday that the coronavirus had delivered a "major shock" to the global economy that required urgent, coordinated action, as she unveiled fresh stimulus to keep credit flowing.

The latest major central bank to jump into the fray, the ECB launched a flurry of measures to cushion the impact of the virus, including increased bond purchases and cheap loans to banks.

But it surprised observers by leaving key interest rates unchanged.

The Paris and Frankfurt stock exchanges extended earlier losses after Lagarde's announcements to post drops of more than 10 percent in the early afternoon.

"The spread of the coronavirus COVID-19 has been a major shock to the growth prospects of the global economy and the euro area," Lagarde told reporters in Frankfurt.

"Even if ultimately temporary by nature, it will have a significant impact on economic activity."
"In particular, an ambitious and coordinated fiscal policy response is required to support businesses and workers at risk."