Monday , December 6 2021

The European Central Bank ends the bond purchasing plan, but still retains housing policy – Xianning Net


Xinhua News Agency, Frankfurt on December 13 Summary: The European Central Bank ends its purchasing program but still maintains a courtesy policy

Xinhua News Agency reporter Shao Li Hu Xiaobing

After more than three years of cumulative purchases of 2.6 trillion euro bonds, the European Central Bank announced the 13th that it will complete its bond purchase program at the end of December. But given that the European economic recovery is still weak, the ECB will still maintain a loose monetary policy.

The Governing Council said that even if the bond purchase plan is about to end, maturity managers will be fully reinvested in order to maintain good liquidity and sufficient money laundering. In addition, the current zero interest rate policy will remain at least until the summer of 2019. Market analysts believe that this means that the ECB will still maintain a large balance sheet for a long time.

In order to stimulate the economic recovery in the euro area and push up the low inflation rate, the European Central Bank began plans to purchase government and corporate bonds in March 2015, but gradually began to adjust the purchase from January 2018. The size of the debt.

The European Central Bank also released the latest macroeconomic forecast on the same day. It is expected that the euro area real GDP growth in 2018 will be 1.9% and 2019 will be 1.7%. Compared to the September forecast, economic growth has been reduced by 0.1 percentage points this year and next year. At the same time, the European Central Bank increased inflation in the euro area to 1.8% by 2018, but lowered the inflation forecast for 2019 to 1.6%. In September, the European Central Bank is expected to have 1.7% inflation for both this year and next year.

At a press conference after the meeting, ECB President Mario Draghi made it clear that the assessment of the risks associated with euro area growth prospects is an overall balance sheet. However, due to the persistence, protectionist threats of geopolitical factors, growing market vulnerabilities and volatility in the financial market, the euro area's economic growth prospects turn down.

Draghi stressed that the euro area economy still needs a lot of monetary policy stimulus in the medium term, and the Council is ready to adjust the policy as needed.

When the European Central Bank lowers its economic expectations that day, many economists believe that the European Central Bank will begin to raise interest rates later. German commercial bank analyst Jorge Kramer predicts that the European Central Bank raises interest rates for the first time until 2020.

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