The European Central Bank issued the fact that their side expected that there would be an increase in bill purchases with a "magnitude" at rates next year after borrowing costs increased in the European Zone.
On this day the ECB is perpetuating the Pandemic Anxiety Purchase Program or PEPP for an amount of 1.85 trillion euros ($ 2.21 trillion) which will expire until Mac 2022.
The institute said the purchase of central bank bills at the first rate was lower than usual and that on that basis the purchase of the bill was likely to be incremented at the second rate. According to the ECB in one sense that the admission of the bill purchase program under the PEPP at the following rate would be carried out at a far greater extent higher than in previous months.
The central bank's commitment to increase more purchases will support the bill price and thus help to maintain lower borrowing costs. This case is a little bit as much as it will make the market a little relieved.
On the different side, the president of the ECB, Christine Lagarde also commented on inflation. Based on independent data, inflation is expected to remain below the target level. Even so, the rate of inflation has shown an increase before this time but price pressures are still weak due to lack of demand.
Finally, he stated that the European economic situation is expected to recover more in 2021 even though there is uncertainty in the first tribe.
