By Reuters Staff
3 Min Read
FRANKFURT, March 11 (Reuters) - The European Central Bank said on Thursday that it was going to boost its bond purchases over the next quarter, in a likely attempt to keep borrowing costs low for a euro zone economy still struggling with the COVID-19 pandemic.
The ECB did not make changes to policy, having nearly a trillion euros of firepower left to buy bonds and keep credit cheap for debt-laden governments, households and firms across the 19 countries that share the euro currency.
But it sought to dispel investor doubts about its resolve to stem any further rally in bond yields, which have risen in recent weeks due largely to external factors such as higher inflation expectations in the United States, rising oil prices and supply disruptions related to the pandemic.
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Euro zone inflation less than meets the eye in lockdowns - ECB Reuters 2/1/2021
FRANKFURT, Feb 1 (Reuters) - Inflation in the euro zone was likely kept higher by temporary factors during the lockdowns last year as some goods became hard to come by and hesitant entrepreneurs put off cutting prices, a European Central Bank study showed on Monday.
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The authors concluded that it was important for ECB policymakers to filter out these and other factors related to the supply of goods and services to focus on how the pandemic was depressing demand, underpinning the need for stimulus.
Euro zone inflation slowed sharply in March but prices only began falling in August. They remained negative through the end of the year before likely rebounding in January as some tax cuts expired.
Euro zone inflation less than meets the eye in lockdowns – ECB
Inflation in the euro zone was likely kept higher by temporary factors during the lockdowns last year as some goods became hard to come by and hesitant entrepreneurs put off cutting prices, a European Central Bank study showed on Monday.
The authors concluded that it was important for ECB policymakers to filter out these and other factors related to the supply of goods and services to focus on how the pandemic was depressing demand, underpinning the need for stimulus.
Euro zone inflation slowed sharply in March but prices only began falling in August. They remained negative through the end of the year before likely rebounding in January as some tax cuts expired.