European Central Bank Slows Down Bond Purchases in PEPP as Inflation Surges
Posted on 09/09/2021
The European Central Bank (ECB) decided to not change its monetary policy. However, the ECB decided to slow down the pace of net asset purchases under its pandemic emergency purchase program (PEPP) over the coming quarter. The Governing Council of the ECB voted to maintain the interest rate on the ECB’s main refinancing operations at 0%, on the marginal lending facility at 0.25%, and on the deposit facility at -0.5%.
“Based on a joint assessment of financing conditions and the inflation outlook, the Governing Council judges that favourable financing conditions can be maintained with a moderately lower pace of net asset purchases under the (PEPP) than in the previous two quarters,” the ECB said in a statement.
Eurozone inflation stepped up to a decade high of 3% in August 2021.