Economics
Draghi Ends ECB Bond-Buying Era Saying Economy Can Beat Risk
- ECB decides to end net asset purchases by the end of 2018
- Inflation seen averaging 1.7 percent in 2018, 2019 and 2020
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Mario Draghi said the euro-area economy is strong enough to overcome increased risk, justifying the European Central Bank’s decision to halt bond purchases and close an extraordinary chapter in the decade-long struggle with financial crises and recession.
The euro fell after the central bank also pledged to keep interest rates unchanged at current record lows at least through the summer of 2019, a longer timeframe than investors had priced in. Policy makers will phase out bond purchases by the end of this year in what Draghi described as a unanimous decision.