ECB strikes hawkish tone as it holds rates and speeds up QE wind-down

Invasion is a 'watershed' moment

Kathleen Gallagher
clock • 2 min read

The European Central Bank has called the Russian invasion of Ukraine a “watershed” moment for Europe, as it took a hawkish tone and adjusted its purchase schedule for the asset purchase programme (APP).

The central bank held rates but revised its monthly net purchases under the APP to €40bn in April, €30bn in May and €20bn in June. This is up from its previous announcement in February, where it said it was planning to make purchases of €40bn in the second quarter, €30bn in the third and €20bn a month from October onward. The central bank added third quarter purchases would be "data-dependent" and reflect the outlook. "If the medium-term inflation outlook changes and if financing conditions become inconsistent with further progress towards our 2% target, we stand ready to revise our s...

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