ECB to launch €1 trillion bond-buying scheme on Monday
The bank is hoping that pumping new cash into the sagging euro zone economy will boost growth and lift inflation
Nicosia: The European Central Bank (ECB) said it will start its new government bond-buying programme on 9 March, hoping that pumping new cash into the sagging euro zone economy will boost growth and lift inflation.
ECB will purchase sovereign debt until at least September 2016.
“We will on 9 March start purchasing euro-dominated public sector securities in the secondary market. We will also continue to purchase asset-backed securities and covered bonds which we started last year," ECB president Mario Draghi told a news conference after the bank’s policy meeting in Cyprus.
The buying will start as the euro zone shows signs of accelerating growth with major consumption and leading indicators beating forecasts since the ECB unveiled the asset purchase plan on 22 January.
Draghi said that ECB’s moves would support the emerging data.
ECB plans to spend €60 billion a month on buying sovereign bonds, and some private sector assets.
Meanwhile, ECB held its key interest rates steady, as expected.
The governing council voted to hold the benchmark “refi" refinancing rate at its current record low of 0.05%.
The two other key rates—on the deposit and marginal lending facilities—were also unchanged at -0.2% and +0.3%, respectively.
AFP contributed to this story.
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