The European Central Bank (ECB) has confirmed it will end a huge programme to stimulate the eurozone economy in December.

The ECB will stop its bond-buying scheme, worth €30bn a month, despite a recent slowdown in the bloc’s recovery.

The move is a major step towards dismantling the policies brought in to stabilise the eurozone in the wake of the financial crisis.

However, the ECB said it was keeping interest rates on hold for now.

In a statement, the bank said it would halve the size of monthly asset purchases to €15bn after September, as long as data remains favourable, and phase them out entirely after the end of the year.

President Mario Draghi acknowledged the bloc’s recovery had stuttered recently but said underlying growth remained strong.

He added that longer-term inflation expectations were “well anchored” towards the bank’s target of just below 2%.

Winding down

The ECB began its asset purchase programme in 2015, years after the UK and US took similar action to shore up their economies.

It has so far pumped more than two trillion euros into the bloc’s economy, while keeping interest rates at or near zero.