Source: European Central Bank
The European Central Bank has said it will, in the next quarter, cut its 1.85 trillion euros or $2.19 trillion bond buying under the Pandemic Emergency Purchase Program due in March. DAX is up +1.17%, EURUSD is up +0.17%.
- While maintaining the rates unchanged, ECB says bond purchases under the Asset Purchase Programme will be increased to offer quantitative easing until the end of the PEPP.
- The central bank officials say economic recovery and the process towards inflation targets call for a gradual reduction in asset purchases in the next quarters.
- ECB cites economic uncertainty prevalent in member countries, including the Omicron variant, in its decision to maintain monetary policy flexibility amid record inflation which hit 4.9% in November.
- ECB’s Dovish tone differs from those of the Bank of England and the Federal Reserve, which signaled hawkish moves in an attempt to tame rising inflation.