ECB President Lagarde signals faster end to bond purchases

<p><span>European Central Bank President&nbsp;</span><span>Christine Lagarde said the Bank is likely to discuss speeding up the shrinkage of its balance sheet by ending the last of its bond purchases earlier than planned</span></p><p><span>Lagarde was speaking at a hearing in the European parliament on Monday.</span></p><p><span>The <a href="https://www.ft.com/content/d7e98c98-51ef-4a0f-a27c-f08a7f6374a7" target="_blank" rel="nofollow">Financial Times had the report</a>, gated. </span></p><p><span>—</span></p><p>Lagarde's comments on this are the clearest she has been on reducing bond buying next year, which at the margin is a tightening in policy.</p><p>Much of the Bank's bond-buying was stopped last year but it continues<span> reinvesting the proceeds of maturing securities in its portfolio holdings. </span></p><figure data-media-><img src="https://images.forexlive.com/images/ft%20lagarde%20bond%20buying%2028%20November%202023_id_a187dcfb-9a80-49ff-ac57-a5808a308658_original.jpg" alt="ft lagarde bond buying 28 November 2023" width="667" height="452" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/ft%20lagarde%20bond%20buying%2028%20November%202023_id_a187dcfb-9a80-49ff-ac57-a5808a308658_original.jpg" /></figure><p><br></p><p><span><br></span></p><p><span><br></span></p><p><span><br></span></p><p><span><br></span><br></p>

This article was written by Eamonn Sheridan at www.forexlive.com.