ECB holds a steady hand, no tapering yet

In Short

Tapering postponed: At today’s policy meeting the Governing Council decided to leave the policy stance unchanged. Most importantly, its stated that net PEPP purchases over the coming quarter will “continue to be conducted at a significantly higher pace than during the first months of the year”. This decision was taken based on a joint assessment of financing conditions and the inflation outlook.


  • At today’s meeting the Governing Council maintained its policy stance. Net PEPP purchases will “continue to be conducted at a significantly higher pace than during the first months of the year”.
  • The growth and inflation outlook improved and – unlike the previous meetings – risks were now assessed as “broadly balanced”.
  • While financing conditions were viewed as “broadly stable” the Governing Council sees risks stemming from higher yields.
  • Exchange rate movements remain on the ECB’s radar screen.
  • All in all, the ECB adopted a steady hand approach. Tapering was postponed and the current speed of purchases could be maintained until the PEPP regularly ends in March 2022.

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