Summary

  • Progress on economic recovery and towards its medium-term inflation target permits a step-by-step reduction in the pace of its asset purchases over the coming quarters. (New)
  • discontinue net asset purchases under the Pandemic Emergency Purchase Programme (PEPP) at the end of March 2022. (New)
  • reinvest the principal payments from maturing securities purchased under the PEPP until at least the end of 2024. (New)
  • In the event of renewed market fragmentation related to the pandemic, PEPP reinvestments can be adjusted flexibly across time, asset classes and jurisdictions at any time. Net purchases under the PEPP could also be resumed, if necessary, to counter negative shocks related to the pandemic. (New)
  • a monthly net purchase pace of €40 billion in the second quarter and €30 billion in the third quarter (New)
  • From October 2022 onwards, the Governing Council will maintain net asset purchases under the Asset Purchase Program (APP) at a monthly pace of €20 billion for as long as necessary to reinforce the accommodative impact of its policy rates. (No Change)
  • In support of its symmetric 2% inflation target and in line with its monetary policy strategy, the Governing Council expects the key ECB interest rates to remain at their present or lower levels until it sees inflation reaching 2% well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realized progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilising at 2% over the medium term. This may also imply a transitory period in which inflation is moderately above target. (No Change)
  • The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00% to 0.25% and -0.50% respectively. (No Change)

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