The ECB maintains its pledge for fast bond-buying
(Kitco News) - As expected the ECB left QE and rates unchanged. The EUR spiked higher in an initial reaction but has now pared most of the gains
The Governing Council expects net purchases under the PEPP over the coming quarter to continue to be conducted at a significantly higher pace than at the beginning of the year. The ECB added they have the flexibility to buy according to market conditions and do not have to use full PEPP envelope which can increase. They did of course affirm the size of the Pandemic Purchase Program at €1.85trl.
The ECB said in the statement "Based on a joint assessment of financing conditions and the inflation outlook, the Governing Council expects net purchases under the PEPP over the coming quarter to continue to be conducted at a significantly higher pace than during the first months of the year."
Other than the statement above not too much has changed from the ECB. They maintain they will keep rates at present or lower levels until the inflation goal is near. Also, the central bank stated they will keep buying at €20bln per month under the APP.
The ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET (1.30 pm London time).