MNI BRIEF: Early APP End, Rate Hikes 'Some Time' After - ECB

Monthly net purchases under the European Central Bank's asset purchase programme will amount to EUR40 billion in April, EUR30 billion in May and EUR20 billion in June, it was announced Thursday, and will end in Q3 if supported by incoming data. However, the Governing Council will revise its schedule for APP in terms of both size and duration if the medium term inflation outlook changes and if financing conditions become inconsistent with further progress towards the ECB's 2% target.

"Any adjustments to the key ECB interest rates will take place some time after the end of the Governing Council’s net purchases under the APP and will be gradual," today's statement read - dropping the previous commitment to raising rates 'shortly after' APP ends, with rate rises to be conducted cautiously.

Net purchases under the PEPP will end this month as planned. No changes to TLTRO or tiering were announced, but the Eurosystem euro repo facility for central banks (EUREP) was extended until 15 January 2023.