Ekonomické zprávy
11.11.2021

All ECB bond purchases could end next fall - ECB's Holzmann

Bloomberg reports that ECB Governing Council member Robert Holzmann said that the ECB could stop buying bonds as early as next September if inflation looks to have sustainably returned to the official target.

Introduced in 2015, the bank’s asset purchase program, or APP, was designed to get consumer-price growth back to 2%, according to Holzmann.

“So the elimination of the condition and therefore the end of the program could -- depending on the inflation development -- happen in September or at the end of the year,” he said.

ECB officials are five weeks away from a meeting to lay out their post-pandemic policy path. While President Christine Lagarde has signaled pandemic asset purchases will end as planned in March, there’s no consensus on what will happen to the bank’s conventional bond-buying plan -- currently running at 20 billion euros a month.

Holzmann, who expects price growth to stay above 2% throughout 2022, said he opposes any changes to the conventional bond-buying plan. He’s also against another round of targeted longer-term refinancing operations aimed at enticing banks to provide loans to the real economy.

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