The European Central Bank (ECB) has pledged to end its bond-buying activities in a few months as the region battles high inflation rates.
After looking at data since its previous meeting, the Governing Council, the main decision-making body of the ECB, judged in an April 14 meeting that net asset purchases under its asset purchase program (APP) must be concluded in the third quarter.
Purchases under APP will reach 40 billion euros ($43.19 billion) in April, 30 billion euros ($32.39 billion) in May, and 20 billion euros ($21.59 billion) in June, the bank said in a press release.
“The Governing Council also intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when it starts raising the key ECB interest rates and, in any case, for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation,” the ECB said.
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