ECB stays on course to end bond purchases this year, raise interest rates next autumn

The European Central Bank kept policy unchanged on Thursday, staying on track to end bond purchases this year and raise interest rates next autumn, even as protectionist moves around the globe drag on growth, Reuters said. Making only a nuanced tweak to its policy stance, the ECB said it would halve its monthly bond purchases to €15 billion from October, firming up its previous language, which said only that such a move was anticipated. ECB President Mario Draghi announced small cuts to the bank’s growth forecasts for this year and next, citing weaker foreign demand, and noted external risks such as rising protectionism and financial market volatility. However, he added that “the risks surrounding the euro area growth outlook can still be assessed as broadly balanced.”