ECB to end bond-buying program in December, rates top remain at record lows
- 6 years ago
The European Central Bank says it will end a massive stimulus program, aimed at revitalizing the Eurozone economy, by the end of the year.
But it also says it will keep interest rates at record lows for now.
Ro Aram reports.
The ECB said Thursday it will be ending its massive three-year bond-buying program by December.
This will be done be winding down its bond purchases from the current 30 billion euros a month to 15 billion after September and then eventually ending at the end of the year.
ECB President Mario Draghi said the quantitative easing program was being phased out because it had succeeded in its aim of putting inflation on course to meet the bank's target of just below two percent.
The asset purchase program, or APP, was put in place in early 2015 to help the eurozone recover from its debt crisis earlier in the decade.
Thursday's announcement came despite a recent slowdown in the bloc's recovery, which Draghi acknowledged, but he said underlying growth remained strong.
The ECB also addressed the doves on the board by deciding not to raise its record-low interest rates until next summer at the earliest.
The bank said it was to ensure inflation remains in line with expectations.
The euro plunged over one percent against the U.S. dollar following the news.
Ro Aram, Arirang News.
But it also says it will keep interest rates at record lows for now.
Ro Aram reports.
The ECB said Thursday it will be ending its massive three-year bond-buying program by December.
This will be done be winding down its bond purchases from the current 30 billion euros a month to 15 billion after September and then eventually ending at the end of the year.
ECB President Mario Draghi said the quantitative easing program was being phased out because it had succeeded in its aim of putting inflation on course to meet the bank's target of just below two percent.
The asset purchase program, or APP, was put in place in early 2015 to help the eurozone recover from its debt crisis earlier in the decade.
Thursday's announcement came despite a recent slowdown in the bloc's recovery, which Draghi acknowledged, but he said underlying growth remained strong.
The ECB also addressed the doves on the board by deciding not to raise its record-low interest rates until next summer at the earliest.
The bank said it was to ensure inflation remains in line with expectations.
The euro plunged over one percent against the U.S. dollar following the news.
Ro Aram, Arirang News.