ECB Plans to End Bond-Buying

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The European Central Bank (ECB) has recently stated that it would end in December the mass bond-buying used to support the Eurozone economy, in an indication of confidence in the outlook for inflation and growth in the bloc.

According to Mario Draghi, the President of the ECB, after September 2018, the bank plans to minimise the monthly pace of the net asset purchases to 15 billion euros until the end of December 2018 and then end net purchases all together.

However, Draghi did issue a note of caution by initiating the step which would be dependent on incoming data confirming our medium-term inflation outlook.

In addition, the bank’s bond buys are currently set at EUR €30 billion (USD $35 billion) a month. Following this, ultra-low interest rates are designed to stoke growth in the 19-nation single currency area and power inflation to the ECB’s target of just under 2.0%.