Breaking News         Latest US News              New York News              Fx Tribune

Amazon’s New Headquarters to Be in “Opportunity Zone”
The ECB wants to invest 15 billion euros a month less in bonds than previously. At the end of 2018, the purchase program should expire.

Fiscal policy: ECB reduces ANLEIHENKÄUFE by half

The ECB wants to invest 15 billion euros a month less in bonds than previously. At the end of 2018, the purchase program should expire.

Fiscal policy: ECB reduces ANLEIHENKÄUFE by half

The European Central Bank (ECB) has announced a halving of its Anleihenkäufe. As of October, ECB will invest only 15 billion euros in government and corporate securities instead of 30 billion euros per month. One end of purchase program is planned unchanged at year-end 2018.

The precondition for this, however, is that inflation continues to develop as it did last. "The Governing Council is in any case willing to adjust all its instruments appropriately to ensure that inflation continues to move in a sustainable way towards Governing Council's inflation target," said ECB president Mario Draghi.

The programme, now based on 2.6 trillion euros, has been central instrument in past three years to strengn economy and to push up inflation that is too low from ECB's point of view. In meantime, economy is much better and inflation is also on up.

The ECB left key interest rate at a record low of 0.0 percent. Already since March 2016 it keeps this level. According to central bank, this should remain same until at least "beyond summer 2019" and a change of course will occur at earliest in autumn 2019.

ECB achieves inflation target

Economists expect ECB to reduce penalty rates for credit institutions first. Savers are expected to wait even longer for a first interest rate increase. On or hand, borrowers continue to benefit from relatively good conditions.

In August, consumer prices in euro area were two percent higher than in previous year, according to Eurostat statistical office figures. In medium term, ECB aspires to price stability at an inflation rate of just under two percent. That's far enough away from zero mark. Permanently low or even declining prices could lead businesses and consumers to postpone investment; This could weaken economy. Since spring, this inflation target has been reached again after it has been missed for many years.

The ECB economists left ir inflation forecasts unchanged. Accordingly, rate of inflation will be up to 2020, 1.7 per cent. Draghi was confident that inflation rate would be closer to target of just under two percent.

Draghi praises more stable banks

The chief of ECB also stressed that stricter rules and closer monitoring of Europe's banks had made it more resilient ten years ago since Lehman bankruptcy. "All in all, banks are now more stable," stated president of European Central Bank. "Can we be complacent about that? No. "

Many risks were migrated to world of shadow banks. There, supervisors and regulators would have to look more closely. Shadow banks are actors in financial markets that perform bank-like functions but are not banks and are refore not subject to regulation for credit institutions.

Publish Date : 14 Eylül 2018 Cuma 12:00

Breaking News Headlines

Fluidra will distribute dividends in 2020
Fluidra will distribute dividends in 2020
Fear that the slowdown and doubts about the economy tarnish the most important appointment of the consumption of the year
Fear that the slowdown and doubts about the economy tarnish the most important appointment of the consumption of the year
The Saturday with the Expansion, the guide to aid to smes and entrepreneurs
The Saturday with the Expansion, the guide to aid to smes and entrepreneurs
The 15 hours 'supreme' of the tataratatarajuez of the Room III
The 15 hours 'supreme' of the tataratatarajuez of the Room III
The communities provincial pull of the Spanish economic growth compared to the slowdown Catalan
The communities provincial pull of the Spanish economic growth compared to the slowdown Catalan
Sanchez justified his decree of mortgages: "democracy is also not always pay the same"
Sanchez justified his decree of mortgages:
Antonio Garamendi, future head of the CEOE: "Has ended a visit to Junqueras"
Antonio Garamendi, future head of the CEOE:
5 Major Ways Education is Influencing Humanity
5 Major Ways Education is Influencing Humanity
Blablacar purchase the French company bus Ouibus SNCF
Blablacar purchase the French company bus Ouibus SNCF
The building mortgage threatens to ruin
The building mortgage threatens to ruin
What To Do To Ensure Comprehensive Safety On Your Devices
What To Do To Ensure Comprehensive Safety On Your Devices
IESE business school extends its presence to Madrid with a new building and new programs
IESE business school extends its presence to Madrid with a new building and new programs
POLLS Results ALL
Who is the most powerful actor in Syria

Front Pages
  • The Sun
NEWS ARCHIVES