ECB is waiting for December to change programme

The European Central Bank (ECB) on Thursday confirmed monthly purchases of $80 billion in government paper, known as the quantitative easing (QE) programme  while interest rates remained flat or come lower for a prolonged period with the principal rate at 0.00%, the bank deposit rate at -0.40% and refinancing rates at 0.25%.

ECB, stressed that "expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.”

On those asset purchases, the ECB affirmed that it intends to continue them at the current pace of  €80 billion a month run “until the end of March 2017, or beyond, if necessary, and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim.” It was originally slated to end in September 2016.

“The tone does suggest that the ECB wants to start weaning the market off sovereign QE,” said Stephen Gallo, European head of currency strategy at BMO Capital Markets. “We will have to see what happens in December,” he said to the Wall Street Journal.