ECB cuts assets buying program
12/3/2018 12:00 am
[rtl]Capitals / follow - up to the morning of the
European Central Bank has taken an important step to expand its commitments to cancel the pace of asset purchases if necessary , it aroused the interest of global markets amid an attempt to explain this sudden action. The Bundesbank chief said the European Central Bank should expand the process of reducing bond purchases after next September. He also stressed that the signals on interest rates are ambiguous and that uncertainty should be removed.
A clear change in monetary policy currently in place in the euro zone began at the beginning of the year and continues to support positive economic developments on a positive note.
The European Central Bank has been pursuing a euro-zone bond purchase scheme since the beginning of the year, worth 30 billion euros a month, to continue until September 2018, or to extend it later if necessary. The bank also showed interest rates in the euro zone on basic refinancing, lending and deposits at record lows unchanged at 0.00 percent, 0.25 percent and 0.40 percent, respectively.
While the European Central Bank (ECB) has decided to rescind its pledges at its previous meetings on its willingness to increase the pace of asset purchases in the eurozone if necessary in terms of economic or financial prospects.
Despite the sudden cancellation of that paragraph in the monetary policy report, the statement kept its pledge to keep interest rates unchanged for a long time and to extend its bond purchases beyond September.
The ECB cut its inflation forecast for next year to 1.4 percent from a previous estimate of 1.5 percent. The consumer price index for the year also showed 1.4 percent, unchanged from 1.7 percent in 2020.[/rtl]