Key points for this month:
- As decided in October, the pace of the ECB’s net purchases has been halved in January. The PSPP has clearly been cut more than the other programs. The net PSPP purchases have fallen by 58% compared to the 3 last quarters of 2017 while the CSPP has fallen by only 11%.
- Lower net purchases improved (probably temporarily) the feasibility of the net purchases and deviations from the capital key rule diminished drastically compared to 2017. The heavy issuance of January also helped the implementation of the PSPP for several countries.
- The average maturity of the German PSPP purchases remain low, at 6.8 years. On the contrary, the average maturity of the Italian and Spanish PSPP purchases has increased significantly.
- Banks’ excess reserves account for almost €1.9 trn. The Eurosystem’s balance sheet is now close to €4.5 trn.
February 06, 2018