European Central Bank tapers PEPP purchases but retains flexibility
The ECB took significant steps to tighten its highly accommodative policy stance over the course of 2022 on the back of upwardly revised growth and inflation projections.
What you will learn:
- Net asset purchases under the PEPP will slow in Q1 and end in March.
- Net asset purchases under the APP will temporarily rise to €40bn per month in Q2 and €30bn in Q3 before returning to €20bn thereafter.
- The bar to ending QE net purchases seems lower now as the temporary top-up of the APP only lasts six months and the new headline and core inflation forecasts are close to target at 1.8% in 2024.
Tags:
Related research
Post
Capital catalysts – Funding development when budgets are tight in Africa
In this presentation deck, we grappled with some of the Africa’s most pressing issues for 2024 and beyond. We explored Africa’s alternative funding strategies during challenging times, examined the continent’s growth hotspot, and unpacked South Africa’s political economy in the lead up to the general elections in 2024.
Find Out More
Post
APAC Key themes 2024 – A year of living cautiously
In 2024, the main influence on Asia is likely to be a global slowdown, particularly in China and the US. Moreover, governments have limited policy space to deal with these headwinds. Other negative influences, however, are set to ease further, including domestic inflation, external pressure on interest rates, and softening semiconductor prices. Overall, we expect a bumpy year as issues become more country-specific and policy responses and economic outcomes diverge.
Find Out More