- Analytics
- News and Tools
- Market News
- ECB will trim the APP at a faster pace – UOB
ECB will trim the APP at a faster pace – UOB
Lee Sue Ann, Economist at UOB Group, assesses the latest ECB event.
Key Takeaways
“The European Central Bank (ECB) said it will scale back its bond buying faster than planned, as Russia's war on Ukraine is a ‘watershed moment for Europe’. It plans to end its Asset Purchase Programme (APP) buying in 3Q22, if economic data allows it. Any adjustments in interest rates will take some time after asset purchases end, adding this would be gradual.”
“Amid surging energy costs, the ECB raised its inflation outlook for this year to 5.1%, up from 3.2%. This forecast was expected to cool to 2.1% in 2023, before dipping to 1.9% in 2024, marginally below the central bank’s target of 2%.”
“Unlike the other central banks, the ECB has a war on its doorstep. Thus, keeping its options open and maintaining full flexibility is what the ECB needs. Crucial in determining the timing of the first hike will be how the Russia-Ukraine war evolves and the impact that has on energy prices. We are in the midst of revising our growth and inflation forecasts for the Eurozone as well as our ECB policy rate forecasts, which will be published in the 2Q22 Quarterly Global Report due later this month.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
