European Central Bank to taper pandemic stimulus, but gently

The European Central Bank has decided against an abrupt pullback of its pandemic support for the economy as the new omicron variant of COVID-19 stirs uncertainty about the continent’s recovery

FRANKFURT, Germany -- The European Central Bank has decided against an abrupt pullback of its pandemic support for the economy as the new omicron variant of COVID-19 stirs uncertainty about the continent’s recovery.

The move Thursday comes despite inflation hitting record highs and the U.S. speeding up its stimulus exit.

The bank confirmed that it will phase out its 1.85 trillion euro ($2.1 trillion) pandemic bond purchase stimulus on schedule next year but will maintain some of the effect by moving part of the purchases to another support program. —

The 19 European Union member countries that use the euro already had been seeing the economic rebound slow because of a rise in infections from the delta variant and shortages of parts and raw materials. That has held back an economy that depends on trade and supply chains.