This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/european-central-bank-economic-stimulus-programme-scale-back-next-year-eu-ecb-mario-draghi-a8021146.html
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| European Central Bank to scale back massive economic stimulus programme from next year | European Central Bank to scale back massive economic stimulus programme from next year |
| (35 minutes later) | |
| The European Central Bank has announced that it will start scaling back its massive €60bn-per-month asset buying programme in the new year, setting the scene for an eventual interest rate hike and underscoring the extent to which the bloc’s economy has recovered since the financial crisis. | |
| In a statement on Thursday, the bank said that from January 2018 it would reduce its monthly asset purchases – which include government bonds and other low-risk financial instruments – to €30bn per month. It will continue at that pace until at least September 2018. | In a statement on Thursday, the bank said that from January 2018 it would reduce its monthly asset purchases – which include government bonds and other low-risk financial instruments – to €30bn per month. It will continue at that pace until at least September 2018. |
| It said that if the eurozone’s economy deteriorates, its governing council stands ready to increase the terms and the duration of the programme again. | |
| The programme, known as quantitative easing, was unveiled in early 2015. Since then the central banks has bought around €2.1 trillion worth of assets, effectively pumping money into the European economy in an attempt to keep its recover from the financial crisis on track. | |
| It's is largely considered one of the main reasons why Europe’s economy has proved so resilient in recent years. But quantitative easing has not fully succeeded in stimulating price rises. Inflation remains stubbornly below the ECB’s official target of just below 2 per cent and wage growth has proved sluggish too. | |
| On Thursday the ECB said that it would readjust the parameters of the programme if “financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation”. | |
| More follows… | More follows… |