European Central Bank cuts pandemic bond buying, but pledges further stimulus
The European Central Bank further cut its bond purchases on Thursday but vowed to continue its unprecedented monetary policy support for the euro zone economy into 2022.
The ECB left its benchmark refinancing rate unchanged at 0%, while the rate on its marginal lending facility remained at 0.25% and the rate on its deposit facility was kept at -0.5%, in line with expectations.
Bond buying under its 1.85 trillion euros ($2.19 trillion) Pandemic Emergency Purchase Programme, or PEPP, which is due to end in March 2022, will be cut next quarter as the scheme winds down.
However, bond buys under the Asset Purchase Programme, or APP, will be ramped up to serve as a quantitative easing bridge through the end of the PEPP, having continued at a monthly pace of 20 billion euros in conjunction with the PEPP until now.
Reference: CNBC
Read More: European Central Bank cuts pandemic bond buying, but pledges further stimulus (cnbc.com)
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