ECB announces economy boost

ECB announces economy boost
ECB President Mario Draghi. Photo: APA
The European Central Bank (ECB) will buy €60 billion of European debt every month from March 2015 until September 2016, ECB president Mario Draghi announced on Thursday.

"The combined monthly purchases of public and private sector securities will amount to 60 billion euros" Draghi told assembled journalists at a press conference in Frankfurt.

The bond-buying programme will continue "until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2%", he added.

Spending €60 billion a month for that long would mean the bank injecting over €1.1 trillion into the economy.

The Euro immediately dropped sharply against the US dollar on the news.

The Financial Times reported that interest on German 10-year government bonds fell by two basis points (=0.1 percent) to 0.5 percent as investors scrambled to buy.

Meanwhile, interest on Greek debt fell 10 points to 8.9 percent, Spanish debt 7 points to 1.46 percent, and French debt four points to 0.66 percent.

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