The European Central Bank has announced plans to buy an additional €750bn in bonds in a bid to support the Euro area through the COVID-19 pandemic.

The bank said the Pandemic Emergency Purchase Programme will see the purchase of sovereign bonds and corporate debt.

It will continue purchasing the bonds until the COVID-19 pandemic is judged to be over – and until the end of the year at least.

In a tweet, ECB President Christine Lagarde said there are “no limits” to the bank’s commitment to the Euro.

“Extraordinary times require extraordinary action,” she said.

Extraordinary times require extraordinary action. There are no limits to our commitment to the euro. We are determined to use the full potential of our tools, within our mandate. https://t.co/RhxuVYPeVR

— Christine Lagarde (@Lagarde) March 18, 2020

The ECB has also voted to expand the range assets eligible for purchase under the Corporate Sector Purchase Programme (CSPP).

It will also ease its collateral standards to allow banks to raise money against a greater proportion of their assets.

“The Governing Council of the ECB is committed to playing its role in supporting all citizens of the euro area through this extremely challenging time,” it said in a statement.

“To that end, the ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that enable them to absorb this shock.

“This applies equally to families, firms, banks and governments.”

It said it “will do everything necessary within its mandate” to meet the challenge, including increased purchase programmes and relaxing self-imposed limits.