World Economic Forum via flickr
Not mentioning specifically when the net bond purchases fall to zero, the ECB hopes to emphasize that there are no specific courses for the incentive program and that any changes remain dependent on economic indicators, while mainly relying on wage data.
The ECB was supported by curtailment of the US Federal Reserve's purchase program in 2014, noting the reluctance of the US central bank to publicly target the end date of the program.
"The Fed made the most successful exit, which is an example for us," said the agency's source, who asked not to be named. "It's important not to reload and save the date flexibly."
ECB President Mario Draghi created a shock wave for the markets earlier this month when he announced potential changes in the quantitative easing program for the regulator. This made investors carefully study any possible clues about the next steps of the central bank, which are expected to be taken at the meeting on September 7.
Half of the analysts polled by Reuters now expect the ECB to announce in September that it will gradually turn off asset buying. While 25% of analysts believe in one-time reduction of the program, the remaining 25% do not expect any changes.
Until now, the ECB has stated that the current rate of purchases has been calculated until December 2017. It may continue if it is necessary, but then the final stage will come.
source: reuters.com
The ECB was supported by curtailment of the US Federal Reserve's purchase program in 2014, noting the reluctance of the US central bank to publicly target the end date of the program.
"The Fed made the most successful exit, which is an example for us," said the agency's source, who asked not to be named. "It's important not to reload and save the date flexibly."
ECB President Mario Draghi created a shock wave for the markets earlier this month when he announced potential changes in the quantitative easing program for the regulator. This made investors carefully study any possible clues about the next steps of the central bank, which are expected to be taken at the meeting on September 7.
Half of the analysts polled by Reuters now expect the ECB to announce in September that it will gradually turn off asset buying. While 25% of analysts believe in one-time reduction of the program, the remaining 25% do not expect any changes.
Until now, the ECB has stated that the current rate of purchases has been calculated until December 2017. It may continue if it is necessary, but then the final stage will come.
source: reuters.com