ECB Reaffirms Plan to Halt Bond-Buying Programme

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The European Central Bank is set to wind down the most important part of its crisis-era stimulus at the end of the year after Mario Draghi delivered an upbeat economic assessment despite risks from trade wars and emerging markets, the Financial Times reported. The ECB confirmed that it would slow the expansion of its quantitative easing programme, reducing monthly bond purchases from €30bn to €15bn from October until the end of the year. It also looks increasingly likely to halt new purchases under the €2.5tn programme in December. Mr Draghi said the measures the ECB planned to keep in place after the end of QE were “robust” enough to produce stable inflation and solid growth. However the ECB president emphasised that monetary policy would stay loose even without QE, which has been in place since early 2015 and which is widely credited with reviving the once-stricken economy. Interest rates are expected to remain at record lows at least through the summer of 2019. Read more. (Subscription required.)