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Inflation reaction: US, UK from Mars, Europe from Venus
The European Central Bank is banking on ‘flexibility’ in continued monetary easing, confirming divergent approaches on inflationary threats compared with the US Federal Reserve and Bank of England. Amid a flurry of central banking policy announcements, the ECB said on 16 December it will scale back pandemic-related emergency asset purchases in line with higher inflation. But it will maintain, resulting in an overall throttling back of monetary ease, an older government bond-purchasing facility and flexibly reinvest maturing securities to help limit the danger of market turbulence. The ECB’s relatively cautious ... (full story)