10/26/2017, 1:48 PM (Source: TeleTrader)
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ECB extends QE by nine months at €30 billion

Eurozone policymakers held interest rates unchanged after a meeting in Frankfurt, and decided to halve asset purchases from January from the current €60 billion per month. The move reflects broad market expectations. The quantitative easing program was extended, as the current round of buying bonds will expire at the end of December. The net investments at a pace of €30 billion will continue through September "or beyond, if necessary," the European Central Bank said.  

The interest rate on the main refinancing operations was held at zero. The rate on the marginal lending facility was maintained at 0.25%, and the deposit facility benchmark is staying at 0.4% in the negative. The guidance was also unchanged, as the governing council again expressed expectations that rates will be at present levels "for an extended period of time, and well past the horizon" of monetary stimulus.

The bond buying will continue until inflation reaches the targeted sustainable level, the statement adds. The principal payments from the scheme will be reinvested for even longer, rate-setters stressed.

Baha Breaking News (BBN) / IT