June 4 (UPI) -- The European Central Bank said Thursday it will add $672 billion to its Pandemic Emergency Purchase Program to help stabilize member states' economies during the coronavirus crisis.
The new funds will raise the ECB's total commitment to the program to $1.5 trillion, the bank said. It also said net purchases under the program will continue through June 2021.
"The PEPP expansion will further ease the general monetary policy stance, supporting funding conditions in the real economy, especially for businesses and households," the bank said in a statement.
"The purchases will continue to be conducted in a flexible manner over time, across asset classes and among jurisdictions. This allows the Governing Council to effectively stave off risks to the smooth transmission of monetary policy."
Thursday's announcement helped reduce borrowing costs in Europe. The euro was trading 0.25 percent higher against the U.S. dollar immediately following the decision.
"The even more aggressive monetary policy stance helps to contain the downside risks," Holger Schmieding, chief economist at Berenberg Bank, said. "In addition, the strong signal can bolster the nascent rebound in the confidence of households and companies that the worst will soon be over."