As expected, the European Central Bank (ECB) has not made any changes to its interest rate policy in its latest decision. However, it has now set a timetable for phasing out its asset purchase programme. The ECB expects to halve its net asset purchases to 15 billion euros per month as of October as well as to discontinue them completely by the end of the year. This latest decision is, however, subject to the condition that incoming inflation data matches the ECB’s inflation expectations. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW), offers his view on the matter.