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ECB flips to a more hawkish tone
At the February ECB meeting, the central bank reiterated that it would be ending PEPP in March but continue buying bonds under the Asset Purchase Program at a pace of 40 billion Euros a month in Q2, 30 billion Euros a month in Q3 and 20 billion Euros a month in Q4. However, due to the continued increase in inflation since the last meeting, all that has changed! CPI for February rose to 5.8% YoY from 5.1% YoY in January. ECB members knew they had to do something, and they did. In the statement, the ECB dropped the language suggesting that rates could be lower than they currently forecast. In addition, it dropped the ... (full story)