ECB announced to “discontinue”net asset purchases under the pandemic emergency purchase programme (PEPP) at the end of March 2022. Reinvestment horizon for PEPP will be extended until at least the end of 2024.
Monthly net asset purchases under the original asset purchase programme (APP) will be doubled to EUR 40B in Q2, then slow to EUR 30B in Q3, and back to EUR 20B in Q4 for “as long as necessary”.
Meanwhile, main refinancing rate, marginal lending facility rate and deposit facility rate were held unchanged at 0.00%, 0.25%, and -0.50% respectively. Forward guidance is maintained that there will be a “transitory period in which inflation is moderately above target.”
