Thursday, January 22, 2015

European Central Bank outlines quantitative easing measure.

The European Central Bank has announced its long expected programme of quantitative easing which it hoped will inject around one trillion euro into the eurozone.

Government bonds reaching 60 billion euro will be purchased by the ECB every month until the end of september 2016.

It means National Central Banks (or NCB's) will be exposed to more risk.

Interest rates will remain unchanged  at 0.05%.

Inflation is still expected to remain very low - with some countries facing a deflationary situation.

The US and the UK have successfully used quantitative easing measures since the financial crisis of 2008 to boost their economies.

The eurozone's economic powerhouse, Germany, is opposed to the measures being implemented - fearing potential losses could negatively affect taxpayers.

ECB president Mario Drahgi.

IN: "Purchases of…"
OUT: "...asset purchases."
DUR: 29s


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According to ECB president Mario Drahgi 20% of the asset purchases will be exposed to risk for eurozone countries.

IN: "Today's monetary…"
OUT: "..has increased"
DUR: 30s


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ECB president Mario Drahgi says euro area recovery is likely to be dampened by high employment.

IN: "It is crucial…"
OUT: "…economic activity"
DUR: 22s