ECB cuts bond purchases, raises growth forecasts to 5%

The European Central Bank said Thursday that it will slightly reduce its emergency bond purchases during the next quarter. in a symbolic step towards reducing the emergency economic assistance that supported the blockade during the pandemic.

Over the next three months, the bank decided to purchase bonds as part of the pandemic emergency purchase program worth € 1.85 trillion, at a pace slightly below the € 80 billion per month purchased in the previous two quarters. .

“The Board of Directors has decided that favorable financing conditions can be maintained with a slightly slower pace of net asset purchases under the Pandemic Emergency Purchase Program than in the past two quarters,” the bank said. in a note.

But he added that he would be flexible in buying bonds, in under market conditions, in an effort to prevent tightening of funding conditions inconsistent with its inflation target.

The bank increased its GDP growth forecasts in thearea of the euro at 5% for the year 2021, in a context of recording an economic recovery after the consequences of the Covid-19 pandemic, as announced by the bank’s president, Christine Lagarde.

On the other hand, experts from the European Central Bank slightly lowered their growth forecast for 2022 from 4.7% to 4.6% and kept their forecast for 2023 unchanged at 2.1%.

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