ECB extends QE until end of 2017, but tapers purchases

Cutting bond purchases to €60bn a month

The European Central Bank (ECB) has extended its QE programme until December 2017 but reduced the amount of bond purchases from €80bn to €60bn a month from April.

ECB President Mario Draghi (pictured) said the Bank will continue its QE programme until December 2017 but will taper its bond-buying, adding the process could continue beyond this time if neccessary. From April, the ECB will buy €60bn of bonds a month, down from its currently rate of monthly purchases of €80bn, which will be continued until the end of March. This had been widely expected by the markets previously. Meanwhile, the benchmark refinancing rates have been left unchanged at 0% for the sixth time in a row. The Bank's move follows the referendum on constitutional reform in...