The Frankfurt-based institution said it will buy 15 billion euros ($17 billion) of assets a month from October to December, and that a decision to halt the program after that continues to be contingent on incoming economic data. Policy makers reiterated that interest rates will remain at their present record lows “at least through the summer” of 2019.
The European Central Bank confirmed it will cut bond-buying in half next month and anticipates that new purchases will be halted by the end of the year.
Another big concern likely to be discussed is Italy. The fledgling government in the region’s third-largest economy is drawing up its spending proposals this month amid reports that Finance Minister Giovanni Tria has threatened to resign over the issue. The European Union requires member countries to keep budget deficits below three percent of output.
Increased tensions over trade between the U.S. and its partners have begun to filter through into the euro area’s performance, with industrial production recording its first annual drop in 18 months and a European Commission gauge of economic confidence at the lowest in a year. – Neal Bhai Reports
