Summary of EU and UK Monetary Stimulus, Liquidity Support and Prudential Measures in Response to COVID-19

The primary objective of the European System of Central Banks consists in maintaining price stability, while supporting the Union’s economic policies, such as a balanced and sustainable economic growth, the fostering of a competitive social market economy, full employment and social progress.

The COVID-19 pandemic represents a considerable challenge with respect to the above objectives. In the face of such challenge, the European Central Bank (ECB) has so far adopted several measures pursuant to its monetary policy powers as well as its bank supervision powers.

Similarly, in the United Kingdom, the BoE committed to taking necessary steps to support the UK economy and financial system during the period of economic disruption caused by the outbreak of COVID-19, consistent with its statutory responsibilities.

These decisions have been supplemented and accompanied by a wide variety of economic support measures adopted by national authorities.

This alert memorandum provides a brief summary of:

• the main monetary policy measures adopted by the ECB and the BoE;
• the key measures adopted on a country level by Belgium, France, Germany, Italy and the UK to increase credit and liquidity to the real economy; and
• supervisory and capital relief measures, adopted in the wake of the COVID-19 pandemic.