The European Central Bank Keeps Interest Rates And The Size Of PEPP Unchanged
After the interest rate meeting, the European Central Bank announced that it will maintain the key interest rate and the 1.85 trillion-euro emergency bond purchase plan (PEPP) unchanged. The statement after the meeting stated that interest rates will be maintained at the current or lower level. It is expected that PEPP will last until the end of March next year at least, and if necessary, until the end of the epidemic, and the principal recovered from maturing bonds will be put into the market again at least until the end of 2023. The original asset purchase plan (APP) investment of 20 billion euros per month will continue for a long time after the interest rate hike. As for the inflation outlook, the central bank expects that inflation will continue to rise during the year, but it will fall back by the beginning of next year. It is also expected that this year's inflation will reach 1.9%, an increase of 0.4% from the previous value, and next year's inflation will reach 1.5%, an increase of 0.3% from the previous value. The European Central Bank maintained its stance on the dove, but Reuters quoted news as saying that at this month's policy meeting, three members of the European Central Bank hoped to slow the pace of the PEPP bond purchase plan.
