The European Central Bank on Thursday announced that it will further taper its bond-buying programme but extended quantitative easing until at least September , as had been widely forecast prior to the decision.
The reduction will come into force in January and QE will continue for nine months longer than previously announced. The ECB said in a statement: Draghi stressed that the bank is "ready" to increase bond buying again in future "if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation.
Draghi was also keen to emphasise that the "recalibration" of its bond-buying programmes should not be described as "tapering" — although this is a minor distinction in the grand scheme of monetary policy. Throughout his press conference, Draghi trod the line between optimism at an increasingly robust eurozone recovery and the continued presence of downside risks to the bloc's economic outlook.
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, described Draghi's performance as a "good day at the office. Asset purchases are set to continue until at least September , but will likely extend beyond that, Vistesen wrote in an email.
The euro dropped sharply on the decisions, falling below the 1. Retirement is lasting longer than ever — here's how to prepare financially. Here's the event that has global brands debating disruptive technology. You have successfully emailed the post. The ECB announced 'a sea change but a very gentle one'.
The move had been widely expected in the markets. Bond-buying will continue until at least September , but will likely go on for longer. President Mario Draghi says that the ECB could increase quantity of bonds it buys if the eurozone economic outlook becomes less favourable. The bank left its deposit rate at Here's how to use one of the many apps to buy and trade bitcoin. Recommended For You Powered by Sailthru.