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The ECB leaves the stimulus intact but changes the tone over the purchase of debt

Maintains types and asset purchase program, but removes the reference to elevate the latter if conditions worsen

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The ECB leaves the stimulus intact but changes the tone over the purchase of debt

The ECB has left this Thursday intact stimuli that brea oxygen into European economy. It has left as were both interest rates, which remain at minimum levels, such as asset-buying program, encrypted at 30 billion euros per month. However, in its communiqué it has eliminated a reference to a possible increase in this procurement programme if situation is distorted, which is interpreted as a change of discourse towards gradual withdrawal of stimulus and normalization of monetary policy.

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The European supervisor has decided to maintain reference interest rate for its refinancing operations by 0%, while deposit facility rate will continue at-0.40% and that of loan facility by 0.25%, while discarding posi Possibility of expanding bond purchase program, monetary agency said. It will continue to purchase debt in amount of 30 billion euros per month and thus continue until end of September 2018 "or until a later date if necessary and, in any case, until Governing Council observes a sustained adjustment of inflation path that is Compatible with your inflation target. " There are no changes compared to November, when it was decided to reduce asset-buying program in half and lengn it until September.

However, communiqué has eliminated message that did appear in November, which opened possibility of extending volume and/or duration of asset purchases program if prospects were less favorable, or if financial conditions were Incompatible with progress of sustained adjustment of inflation path. Thus, attention of investors is now focused on press conference that will be offered by President of entity, Mario Draghi, in which Italian banker is expected to begin to subtly prepare market for exit of program of quantitative expansion (QE, according to its acronym in English), according to consensus of analysts consulted by Europa Press.


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