The European Central Bank is slowing down the pace of its pandemic bond-buying program, an acknowledgment that the Euro Zone’s economic recovery is gaining strength.
The central bank’s Governing Council decided to conduct purchases at a "moderately lower pace" than the roughly 80 billion euros ($95 billion U.S.) of monthly acquisitions deployed in the past two quarters.
Officials also reiterated a pledge to keep the 1.85-trillion-euro bond buying program running until March 2022 or later if needed, signaling they’re not yet ready to discuss how and when to end emergency stimulus measures.
The European central bank’s stance differs from that of the U.S. Federal Reserve, whose policy makers are preparing to wind down its asset purchases later this year.
The Euro currency trimmed gains on the news of the bond tapering, trading at around $1.1819 U.S.
