The ECB's Mario Draghi has this afternoon announced that the ECB are indeed expanding their QE programme. They will buy €60 billion worth of bonds a month. The ECB will buy bonds until September 2016 starting in March 2015. The proposal is that the asset purchase programme will continue until there is a sustained inflation improvement in the Eurozone area. The statement emphasis is on the requirement for economic stimulus rather than any other motive for QE but provides that 20% of the additional asset purchases will be subject to risk sharing. It seems likely that the risk sharing aspects of this policy will meet with further analysis and it will be interesting to see the impact of this unprecedented monetary surge on Eurozone members and the UK.
The European Central Bank will make a final decision today on a €50 billion-a-month stimulus plan intended to counter deflation and kick-start growth in the Continent’s flagging economies