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Interest rates are likely to remain on hold for another year, potentially causing tensions later in the year if inflation remains elevated.
By Azad ZANGANA, Senior European Economist and Strategist, Schroders
Following today's European Central Bank (ECB) Governing Council meeting, the central bank announced that it plans to extend its quantitative easing programme (QE) from September to December 2018, but with monthly purchases tapered from €30 billion to €15 billion. It then expects QE to end, although any bonds maturing will be replaced to maintain the net balance held on the ECB's balance sheet.
The ECB also updated its forward guidance on interest rates, stating that they will remain at current levels at least through...
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