March 08, 2018 - 4:55 AM
FRANKFURT - The Latest on the European Central Bank's monetary policy meeting (all times local):
1:45 p.m.
The European Central Bank has tweaked its main monetary policy statement — a hint that it is getting closer to withdrawing a key economic stimulus program.
The bank on Thursday left its key interest rates on hold as well as the size of its bond-buying stimulus program. But in its statement it omitted an earlier promise that it could increase its bond-purchase stimulus in size or duration if the economic outlook worsens.
Economic growth of 2.7 per cent year on year in the fourth quarter has made that promise increasingly outdated.
The bank has said it will continue buying 30 billion euros ($37 million) in bonds per month through September and longer if needed — but has given no precise end date.
Stimulus withdrawal could mean a stronger euro versus the dollar, higher returns on savings and stiffer borrowing costs for indebted governments in the 19-country eurozone.
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11:40 a.m.
Markets are waiting to see whether the European Central Bank will drop any hints about when its economic stimulus will end.
ECB President Mario Draghi is to hold a news conference after a meeting Thursday of the bank's 25-member governing council.
The bank isn't expected to change its stimulus programs, but investors are watching to see if it drops a promise to ramp up stimulus if needed. Removing that promise would be a small signal that the bank is closer to exiting its stimulus.
The bond-purchase stimulus has been pumping newly created money into the eurozone economy since March, 2015. The ECB has said purchases will continue at 30 billion euros ($37 billion) monthly at least through September.
A stimulus exit would likely send interest rates and the euro higher.
News from © The Associated Press, 2018