FRANKFURT (Reuters – Thursday’s cut in stimulus by the European Central Bank was a further indication of its relaxed attitude towards inflation. It also promised that it would continue to support 2022 with a lot of assistance, proving that any departure from years and years of extraordinarily easy policies will not be quick.

It said that it will cut its bond buying under the 1.85 trillion euro Pandemic Emergency Purchase Programme in the next quarter, and that it will end the scheme next March as anticipated.

The ECB will continue to be active on the markets by increasing bond purchases under the more stable, but less rigid Asset Purchase Programme. A spike in inflation has been deemed temporary by the central bank for euro-zone.

In the second quarter it will purchase bonds worth 40 billion Euros under the APP, and another 30 billion Euros in the third. Then, from October, the purchases of 20 billion Euros will be continued to strengthen the accommodative effects of its policy rates.

The Governing Council stated, “The progress made in economic recovery towards the medium-term target for inflation permits a stepwise reduction of the pace at which its asset acquisitions over the next quarters.”

Analysts believe that the ECB would cut its bond purchases to half by April. However, this effective reduction is less likely as there is more government issuance. The ECB will still continue to supervise the acquisition of most new debt.

Now, attention turns to Christine Lagarde (ECB President)’s news conference at 1330 GMT where she will present new economic forecasts.