ECB to launch bond repurchase from October 30th


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ECB to launch bond repurchase from October 30th

On Friday, the 25th of October 2019, the monetary authorities of Frankfurt had reported on their website that the ECB (European Central Bank) would start-off its slated bond buyback worth of $20 billion every month until Europe’s sluggish economy could harbour on to a much safer line-up, as early as by October 30th, adding that the transactions would be finalized on November 1st.

In point of fact, latest ECB decision to launch its bond repurchase program earlier-than-anticipated comes forth over the heels of an imminent departure of current ECB Chair Mario Draghi, long-credited for his unconventional approaches including application of a negative interest rate on deposits which squeezed the savers further amid a slowing economy, who would be ending up his eight year tenure by October 31st, while former IMF (International Monetary Fund) head Christine Lagarde, a more conventionalist economist who grew up under communism in Bulgaria, would be taking charge from November 1st.

Besides, back in a September ECB policy meeting, ECB’s Draghi had decided to resume his earlier plan to a controversial repurchase of government bonds alongside other securities without specifying any end date, while conservatives had slammed his decision adding that the use-up of ECB’s last lifeline, bond repurchase, would leave IMF’s Lagarde bare handed in terms of changing monetary policy in context of little supports from the government.