ECB sets stage for crucial December decision on bond purchases and other measures

Summary

As expected, the ECB announced a moderate slower pace of net asset purchases under the PEPP for next quarter, as compared to that in the previous two quarters. The decision was taken by unanimity by the Governing council on the back of favourable financing conditions and slightly better inflation outlook

Key points

• Key points:
• The ECB will “moderately” slow purchases under the PEPP program during the next quarter
• Inflation projections are raised, but they remain well below 2% in the medium term and the ECB continues to see current pressures as temporary
• The discussion on future of the PEPP and other measures is postponed until December

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