By Swann Collins, investor, writer and consultant in international affairs. Eurasia Business News – March 14, 2022
On the basis of its updated assessment and in view of the uncertain economic environment in Europe, the Governing Council of the European Central Bank on March 10 revised the timing of purchases under its asset purchase programme (APP) for the coming months. Monthly net purchases under the APP will amount to €40 billion in April, €30 billion in May and €20 billion in June.
The ECB maintained its key rates unchanged. The interest rate of the main refinancing operations as well as those of the marginal lending facility and the deposit facility will remain unchanged, at 0.00%, 0.25% and -0.50% respectively.
The calibration of net asset purchases for the third quarter of 2022 will depend on the data and will reflect the evolution of its assessment of the outlook. Should the medium-term inflation outlook change and financing conditions no longer allow further advances towards the 2% inflation target for the euro area, the Governing Council stands ready to revise both the volume and duration of its net purchases of assets.
The Board of Governors also intends to continue reinvesting, in full, the principal repayments of maturing securities acquired under the APP for an extended period after the date it starts raising interest rates Directors of the ECB and, in any case, for as long as necessary to maintain working conditions favorable liquidity and a high degree of monetary support.
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© Copyright 2022 – Swann Collins, investor, writer and consultant in international affairs.