RSS   Newsletter   Contact   Advertise with us

ECB starts 1 trillion euros plan to revive euro economy

Staff writer ▼ | January 22, 2015
The European Central Bank launched a government bond-buying program which will pump hundreds of billions in new money into a euro zone economy.
European Central Bank
Ambitious plan   European shares hit seven-year highs
The ECB said it would purchase sovereign debt from this March until the end of September 2016, despite opposition from Germany's Bundesbank and concerns in Berlin that it could allow spendthrift countries to slacken economic reforms.

Together with existing schemes to buy private debt and funnel hundreds of billions of euros in cheap loans to banks, the new quantitative easing program will release 60 billion euros ($68 billion) a month into the economy, ECB President Mario Draghi said.

By September next year, more than 1 trillion euros will have been created under quantitative easing, the ECB's last remaining major policy option for reviving economic growth and warding off deflation. The flood of money impressed markets: the euro fell more than two U.S. cents to $1.14108 on the announcement, and European shares hit seven-year highs.


 

MORE INSIDE POST