Jun 14 2018

ECB reigns the horse (read QE stimulus)

European Central Bank chief, Mario Draghi announced today the tapering of bond buying in this month’s decision defying expectations that the decision will wait till July.

ECB decided to end its 2.55 trillion Euro bond purchase programme at the close of the year. They plan to buy 15 billion Euros worth of bonds per month between October to December from an earlier 30 billion Euros per month and thereafter close the scheme at the end of the year.

The policy makers decided to keep the interest rates unchanged until summer of 2019, to ensure the inflation remains aligned with current expectations of a sustained adjustment path.