European Central Bank has voted to stop its huge bond-buying programme, but interest rates will remain at record lows for a long timeECB president Mario Draghi is holding a press conference nowECB has bought more than €2 trillion of government bondsECB to end QE bond purchases in DecemberCentral bank: interest rates on hold until summer 2019 3.05pm BST Candice Bangsund, vice president and portfolio manager at Fiera Capital, says today’s meeting had something for hawks and doves.“Despite political turmoil in the Eurozone’s periphery and a recent soft patch of economic results, the ECB has set the stage for an end of QE later this year. Indeed, for the hawks, the ECB announced that it will taper the pace of monthly asset purchases after September (from €30bn/month to €15bn/month) and then end the purchase program in December. “However, for the doves – the ECB tempered this stance somewhat by reiterating its pledge that interest rates will remain unchanged until the back-half of 2019 (“at least through the summer of 2019”) – which is slightly longer than markets were expecting.” 2.39pm BST And finally, Draghi denies that the ECB plotted against the new Italian government by stopping buying its bonds last month.There’s not conspiracy here, he insists.Draghi on the 5 Star/League theory that the ECB caused the market turmoil in Italy in May: “No conspiracy here” (said with a wry smile) Continue reading…
Via: ECB to end QE stimulus programme in December – business live
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