European Central Bank surprises markets with plan to wind down stimulus sooner than planned
CNBCMAR 20 2022
The ECB should hold off until we better understand the economic impact of the Ukraine-Russia crisis. Its actions are completely backward; the Bank should've been eyeing interest rate moves before tapering its asset purchasing program, which will be very difficult to reinstate again if needed.
The Russia-Ukraine war is a watershed moment for Europe, but interest rates have held steady. The decision to stop pumping money into financial markets will prevent stagflation. The ECB is working to keep its commitment to price stability and normalize monetary policy.