The European Central Bank said it will cut its bond buying for the second time in less than two weeks, as its members weigh up the possibility of a possible debt crisis.
The decision came on the heels of a second cut to its bond purchases in just under a week.
The move followed the ECB’s announcement that it is now considering extending its bond-buying program, as well as the risk of another downgrade of the European currency.
“We will not take risks,” ECB Vice President for Monetary Affairs Jeroen Dijsselbloem said on Monday.
“Our priority is to ensure the stability of the euro area, the strength of the currency, and to ensure that we don’t see a recurrence of the current crisis.”
The ECB’s bond buying program is expected to last until February, the same month the eurozone’s economy starts to grow again.
A weaker euro and tighter monetary policy by European countries would likely further hurt the economy, as the European Central’s balance sheet shrinks and yields increase.
The ECB’s decision comes as the eurozone economy struggles to recover from the fallout from last month’s global financial crisis.
While the ECB is continuing to buy money from governments and bondholders to try to prop up the economy through the coming year, other countries are not.
The EU’s leaders are still trying to come to terms with the devastating economic fallout from the global financial meltdown.
The new round of bond purchases comes as some eurozone leaders are pushing for an even more radical easing of monetary policy in order to help stem the crisis.
German Chancellor Angela Merkel has called for a total eurozone bailout, but some of her closest allies, including French President Emmanuel Macron, have called for tighter rules and greater transparency on how the eurozone is spending its resources.