Connect with us

Hi, what are you looking for?


European Central Bank might cut stimulus packages in Q4

European Central Bank

Financial experts have expected the European Central Bank (ECB) to start slowing down its pandemic bond purchases in the fourth quarter of this year 2021.

Experts said that ECB may not consume all the allocations of the stimulus program that it has set for the current year, which amount to 1.85 trillion euros.

They stressed that the improvement in economic conditions will reduce the purchase of 80 billion euros per month during this September, to nearly 50 billion euros in March of next year.

European Central Bank

“It would be premature to decide on when to cease the Pandemic Emergency Purchase Program, but a reduction of the monthly purchases is reasonable — especially since financing conditions have improved since June,” said Joerg Angele, senior economist of Bantleon Bank AG, told Bloomberg.

The monthly meeting of the European Central Bank’s Governing Council is scheduled for next Thursday.

This step, if taken, will come weeks after US Federal Reserve Governor Jerome Powell announced that the recovery of the US labor market with inflation prospects may allow the board to start reducing stimulus packages this year.

Most of the economists who participated in a survey Bloomberg carried out did not expect these developments to affect the European Central Bank, as investors have already prepared for such a scenario.

European currency

In a related context, the euro consolidated near a one-month high against the dollar and a six-month peak against the pound sterling, supported by statements that tend to tighten monetary policy by policy makers in the European Central Bank.

Data showed that inflation is at its highest level in ten years and in light of indications that the Federal Reserve is in no rush to tighten policies.

The dollar has fallen over the past two weeks as doubts creep in about when the US Federal Reserve will begin to scale back its stimulus.


ADNOC Abu Dhabi Petroleum said that it will increase the number of shares offered for the public offering of ADNOC Drilling. The company raised...


Shell Global fuel company said it will start producing low-carbon jet fuel over the next four years. The company said it would encourage airlines...


The U.S. Treasury Department has called for the urgent need to raise the government debt ceiling to avoid a looming historical financial crisis. U.S....


The Egyptian Banque Misr intends to obtain the largest loan in its history, in light of a record turnout from banks to provide financing....