European Central Bank’s President Remarks ‘The lady isn’t tapering’

The European Central Bank (ECB) announced “slowing down“ it’s asset purchase program under Pandemic Emergency Purchase Program (PEPP). Some estimates suggest that PEPP bond-buying program could slow down to a range between 60 billion euros to 70 billion euros from roughly 80 billion euros a month.

The ECB however to maintain 0.00% on main refinancing operations, 0.25% on marginal lending facility and -0.05% on deposit facility. The governing council expects to maintain this rate until inflation target of 2% has been achieved. The ECB also added it might experience transitory period where the inflation is “moderately” over the target level.

In a Twitter post, the ECB posted inflation forecast where inflation in 2021 to see 2.2% which is above the target level and slowing down to 1.5% end of 2023.

ECB’s real GDP forecast remains 5.0% for 2021 with 4.36% and 2.1% for 2022 and 2023 respectively. Earlier Euro Zone inflation for August topped decades high of 3% YoY.