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The European Central Bank leaves markets guessing

As the Ukraine-Russia conflict continues to cause uncertainty, the central bank delays any major policy decisions.

14 April 2022

Following its hawkish tilt in March to wind down bond purchases slightly faster than forecast, April’s European Central Bank (ECB) meeting was a bit of non-event for any new news, following so closely in time to the last meeting. Maintaining the narrative of “optionality, gradualism and flexibility” on scaling back bond purchases, it now expects to end net purchases by the end of the third quarter this year which was the only new acknowledgement. The Ukraine-Russia conflict continues to muddy the waters for its forecasting and this has pushed the central bank to hold off any major policy decisions for a few more months yet, leaving June’s meeting as the major market moving event, possibly even while inflation remains rampant.

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Charles Hepworth

Investment Director
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