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The European Central Bank will stop reinvesting cash from maturing bonds bought under its 3.2 trillion Asset Purchase Programme from July, it said on Thursday, taking another small step towards shrinking its oversized balance sheet. The ECB has been allowing 15 billion euros' worth of bonds, mostly government debt, to expire since March but policymakers have been calling for a full stop to reinvestments as markets have easily accepted the ECB's diminished role as a buyer. "The Governing Council will keep reducing the Eurosystem’s asset purchase programme portfolio at a measured and predictable pace," it said.