European Central Bank to end bond buying

The European Central Bank (ECB) will shut its hallmark bond purchase scheme by the close of the year, it said on Thursday, taking its biggest step yet toward dismantling crisis-era stimulus a decade after the start of the euro zone's economic downturn.
But in a balanced announcement reflecting the uncertainties hanging over the economy, it signalled that any interest rate hike is still distant, raising the prospect that ECB chief Mario Draghi might leave office in October 2019 without having raised rates in his eight-year term.
The timid move to roll back stimulus contrasted with the US Federal Reserve's rate hike a day earlier, which signalled a break from policies used to battle the 2007-2009 financial crisis and a return to normalized central banking. The new rates guidance sent the euro down over 1% against dollar to $1.16.
"While yesterday's Fed hike was very much 'hawkish', ECB opted to announce the end of net asset buy with a dovish flavour," BNP economist Luigi Speranza said. reuters