The European Central Bank (ECB) has extended its Public Sector Purchase Program (PSPP) until December 2017. However, it reduced the purchase pace by €20 billion. In its latest policy decision today, the ECB said it would be carrying out a slower pace bond-buying a month from €80 billion to €60 billion per month.

The ECB kept its three main interest rates unchanged this month.

ECB monetary policy statement reads,

“Regarding non-standard monetary policy measures, the Governing Council decided to continue its purchases under the asset purchase programme (APP) at the current monthly pace of €80 billion until the end of March 2017. From April 2017, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. If, in the meantime, the outlook becomes less favourable or if financial conditions become inconsistent with further progress towards a sustained adjustment of the path of inflation, the Governing Council intends to increase the programme in terms of size and/or duration. The net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP.”

The ECB president Mario Draghi will hold a press conference at 13:30 GMT and will be publishing staff macroeconomic forecasts until 2019.

The euro is currently trading at 1.077 against the dollar.