European Central Bank (ECB) President Mario Draghi has announced the launch of an expanded monthly 60 billion euro ($70 billion) private and public bond-buying program that will last until at least September 2016.
The long-anticipated asset-purchasing program—touted as the euro zone’s answer to the U.S. Federal Reserve’s quantitative easing (QE) programs—will start this March, Draghi told reporters at his regular media conference on Thursday.
Explaining the ECB’s decision, Draghi said: “Inflation dynamics have continued to be weaker than expected.”
The size of the program was bigger than the 50 billion euro per month rumored prior to Draghi’s announcement.
The ECB kept its main interest rate unchanged on Thursday. It kept its main refinancing rate at 0.05 percent, with the rate on its marginal lending facility at 0.30 percent. The rate on its deposit facility was held at -0.20 percent.
Full article: ECB launches bigger-than-expected QE program (CNBC)