The European Central Bank kept interest rates steady on Thursday as it assessed the economic impact of Russia's invasion of Ukraine.
The decision to wind down asset purchases faster than planned was announced by the European Central Bank.
If the incoming data support the expectation that the medium-term inflation outlook will not weaken even after the end of our net asset purchases, the Governing Council will conclude net purchases under the APP in the third quarter.
It said that in April, May, and June the monthly net purchases under the APP would be 40 billion euros.
The central bank's benchmark refinancing rate, the rate on its marginal lending facility, and the rate on its deposit facility were all kept at zero.
Market participants will be watching Christine Lagarde's press conference. There are hints about Europe's growth prospects given the crisis.
Shortly after the decision, the euro was up 0.25 percent. The common currency jumped 1.6% on Wednesday, its biggest jump in almost six years.
Russia's conflict with Ukraine was described by the ECB as a "watershed for Europe" and the Governing Council pledged to pursue price stability.
Two weeks after Russian President Putin launched a full-scale invasion of Ukraine, the European Central Bank is holding a meeting in Germany. The conflict has had a negative impact on the global economy, with Western allies imposing sanctions against Russia.
Concerns that the euro zone economy could face a deflationary shock have been raised by the surge in energy and commodity prices. The cocktail of sluggish economic growth and high inflation is referred to.
The ECB has a lot to think about. It has been the most sanguine of the central banks when it comes to tightening policy, and with good reason, but it is all different now.
The conflict in Ukraine will cause food and energy prices to go up. It can't be left to run out of control, but it can't be left to roll over.
Consumer prices in the 19 countries that use the euro currency have climbed to record highs for four months in a row. The medium term inflation target is 2%.
It is feared that the conflict in Ukraine could cause more problems for supply chains already disrupted by the coronaviruses, negatively impacting economic growth alongside soaring oil and gas prices.
The majority of economists in a March poll expect the European Central Bank to wait until the last few months of the year to raise interest rates. There is no consensus on whether the central bank could bring an end to its asset purchase programme.
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