Despite the supposed end of quantitative easing in December 2018, future reinvestments promised by the European Central Bank mean it will purchase at least another 180 billion euros of bonds in 2019. This offers ample room for channeling the money created by the ECB more effectively.
At Thursday’s meeting of its governing council, the European Central Bank (ECB) announced that it “anticipates” ending quantitative easing (QE) by December 2018. It is the first time that the ECB has explicitly put a possible end date to its programme. This led the euro to fall, with markets worrying that the ECB’s withdrawal from its stimulus would negatively impact the Eurozone economy.
However, from a closer look it appears that the ECB’s announcement does not quite mean that quantitative easing will disappear by December. In fact the stimulus programme is here to stay for quite a long time. Continue reading “Is the end of quantitative easing near? maybe later!”