The ECB will implement QE with some flexibility

Summary

At today’s monetary policy meeting, the ECB left the key policy rate unchanged at 0.05%. As regards non-standard measures, the central bank provided further details on the implementation of the public sector purchase program (PSPP), announced at the 22 January meeting. On general lines, the programme will be flexible in its implementation, in order to achieve the EUR60bn of monthly purchases combined of public and private sector securities. This flexibility paves the way to increase the ECB’s balance sheet by EUR1,100bn by the third quarter of 2016, as the ECB reiterated that the programme is “intended” to continue at least until September 2016, and beyond if necessary

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