The Council of Governors of the European Central Bank meets on Thursday.
The European Central Bank (ECB) today kept the reference interest rate unchanged and confirmed the goal of accelerating the asset purchase plan to promote the rapid recovery of the European economy. The agency led by Christine Lagarde wrote in a statement: “The Board of Governors expects that net purchases under PEPP will continue to grow at a significantly higher rate in the next quarter than in the first few months of this year. .”
Since March, the European Central Bank has purchased assets at a rate of 19 billion euros per week, up from 14 billion euros at the beginning of the year. Thursday’s decision points to maintain or increase the number until the economic recovery is guaranteed. Most economists surveyed by Bloomberg expect the European Central Bank’s acquisition plan to be reduced until September.
According to a group of economists surveyed by Bloomberg, Lagarde also raised the economic outlook today, which should be more optimistic. The inflation forecast is also expected to be revised upwards.
In May, the Eurozone inflation rate rose to 2%, higher than the European Central Bank’s target. However, some analysts believe that this increase is temporary due to the constraints of the industry’s supply chain due to rising fuel prices and the pandemic.
The ECB’s emergency plan will last until March 2022, and economists don’t expect the plan to be extended beyond that date.