Euro spikes after ECB drops promise to increase bond buying

Kept rates unchanged

Tom Eckett
clock • 7 min read

The euro jumped in early afternoon trading after the European Central Bank (ECB) removed commitments to increase its bond-buying programme but reaffirmed its loose monetary policy conditions by keeping interest rates unchanged.

Seen as a small step towards normalisation from the ECB's governing council after stimulus measures were implemented during the eurozone crisis, the Bank removed a paragraph featured in previous monetary policy meeting minutes, which said it stood "ready to increase the asset purchase programme in terms of size and/or duration" should concerns in the bond market rise. ECB President Mario Draghi said the reason for the statement removal "was a backward looking decision without signals or implications for either our expectations or reaction function". However, the ECB reiterated it will...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Advisers predict returns uptick in face of increased market volatility until 2030

Advisers predict returns uptick in face of increased market volatility until 2030

Investor Confidence Barometer from Scottish Widows

Jenna Brown
clock 07 January 2026 • 2 min read
Advisers see more market volatility coming in 2026

Advisers see more market volatility coming in 2026

Uncertainty over the global economy and UK inflation rate

Isabel Baxter
clock 06 January 2026 • 2 min read
Inflation falls faster than predicted ahead of BoE interest rate vote

Inflation falls faster than predicted ahead of BoE interest rate vote

3.2% in November

Michael Nelson
clock 17 December 2025 • 2 min read