Research Briefing
| Dec 17, 2021
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
Inflation – not past the peak and easing will be gradual for France
France has dodged soaring price pressures better than its eurozone peers, but we think its inflation will fall more slowly.
Find Out More
Post
Answering the questions in our US forecasters’ inbox
In this new quarterly Research Briefing series, we answer the top five questions we've recently received from clients.
Find Out More