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The European Central Bank Announces That Interest Rates And All Monetary Policies Remain Unchanged

The European Central Bank announced after the interest rate meeting that it would maintain interest rates and all monetary policies unchanged, in line with market expectations. However, the European Central Bank stated that it will slow down the purchase of debt under the Emergency Anti-epidemic Bond Purchase Program (PEPP) in the first quarter of next year, and expects that the entire program will end at the end of March next year, but extend the reinvestment period of PEPP at least until the end of 2024. In order to avoid large fluctuations in the asset market, the European Central Bank has decided to increase the monthly regular asset purchase plan (APP) to 40 billion (Euros, the same below) starting in the second quarter of next year, and then decrease to 30 billion in the third quarter. As for the fourth quarter It has been restored and maintained at RMB 20 billion, and is expected to end shortly before the increase in the key interest rate. The European Central Bank statement stated that due to the economic recovery and progress in achieving the medium-term inflation target, this allows the central bank to gradually reduce its debt purchases. However, in order to stabilize inflation at the 2% inflation target in the medium term, loose monetary policy still needs to be maintained. In view of the current uncertainty, there is a need to maintain flexibility and selectivity in the implementation of monetary policy.
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