The euro has weakened against the pound but has strengthened against the dollar after the European Central Bank confirmed that it would begin to slow down its pandemic bond-buying programme.
This decision to “moderately lower” the pace of the PEPP comes after eurozone inflation reached 3% in August, the highest rate in a decade. Interest rates have been left unchanged.
When asked about the decision, ECB president Christine Lagarde claimed that the Bank was not tapering, but rather “recalibrating” in order for “favourable financing conditions to be maintained”.
