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ECB Unexpectedly Dials Back Stimulus Pledge as Economy Improves

  • Mario Draghi holds media briefing at 2:30 p.m. in Frankfurt
  • Euro jumps on surprise signal of confidence in inflation
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Kathy Jones of Charles Schwab and Megan Greene of Manulife react to the latest ECB policy decision.(Source: Bloomberg)
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The European Central Bank unexpectedly dropped its pledge to expand its monthly bond purchases if needed, signaling its confidence in the euro area economy’s ability to reignite inflation.

Policy makers meeting in Frankfurt said quantitative easing will continue at the pace of 30 billion euros ($37 billion) until at least the end of September, but left out the so-called easing bias that the plan could be increased in “size and/or duration” if the inflation outlook deteriorates. They will keep buying until they are satisfied that consumer-price growth is back on track toward the goal of just under 2 percent.