The ECB’s decision fell within the expectations already outlined in the preview of this event. In summary, the ECB will:
• Reduce, from January onward, the monthly purchases of 60 000 M. € to 30 000 M. €.
• The asset acquisition program will run from January 2018 through September of that year.
• The ECB will reinvest the repayment of the obligations that will mature into new debt issues, so the monthly amount of purchases should exceed 30 000 M. €.
• Interest rates will remain at current levels even after the end of this program.
In reaction to this decision, the Euro devalued itself (the message, although expected was not severe enough to inspire a new appreciation of the Euro), which favored European stocks. Another factor adversely affecting the common currency was the generalized decline in yields, especially in Southern Europe (the most favored by ECB purchases).