5 March 2015

European Central Bank Begins Quantitative Easing

ECB will start purchasing €60bn worth of government bonds per month starting with  March 9 until September 2016. ECB President Mario Draghi announced the program will remain in place until Eurozone’s inflation rate will come close to the 2 percent target. Draghi also raised the economic forecast for the Eurozone to 1.5% growth this year, 1.9% in 2016, and 2.1% in 2017. The euro currency further depreciated to less than $1.10 as of March 5. Investors reacted with confidence to Draghi’s announcements. London’s FTSE index gained 0.6%, France’s CAC gained 1.03%, Germany’s DAX gained 1.05%, and the Euro Stoxx 600 went up 0.85%.

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