European Central Bank (ECB) can complete the program of buying assets on the market this year's end, the head of the Central Bank of the 19 euro zone areas Mario Draghi confirmed, speaking on the European Parliament committee.
He remembered that the inflation in the region rose to 2.2% in October from 2.1% in September. Draghi noted, on the whole, that events development confirms the previous ECB governing board estimates for medium-term inflation forecasts. Demand and domestic pay dynamics continue to support the regulator's confidence that there will be a constant convergence of inflation in the eurozone with the ECB target value continuing.
"So, the Board of Governors continues to assume, subject to data that come in confirming our medium-term inflation forecasts, that net asset purchases will be completed in December 2018," he said Draghi.
The ECB introduced several years ago by a number of non-standard financial policy measures, among them the asset purchase program. Its main objectives were to increase the low inflation in the eurozone and to reach closer to the target indicator – just below 2% for the medium term. According to ECB forecasts, published in September, the annual inflation in the eurozone will be 2018-2020 at 1.7%.
The ECB on its governing councils assesses its financial policy measures. After a series of recent board meetings, it was stated that the completion of the asset purchase program could take place in December this year.