Ecb To Buy €60 Billion A Month In Bonds Aimed At Stimulating Growth

- European Central Bank (ECB) President Mario Draghi has announced a multi-billion-euro package, aimed at fending off deflation and stimulating growth.

The ECB decided to launch an expanded asset purchase programme, encompassing the existing purchase programmes for asset-backed securities and covered bonds, Draghi said at a press conference, organised after its policy board meeting, when the interest rates were held unchanged.

"Under this expanded programme, the combined monthly purchases of public and private sector securities will amount to 60 billion euros" Draghi said.

The long-awaited program, known as quantitative easing, comes after inflation in the 19 countries of the eurozone fell below zero and raised the specter of deflation, a sustained decline in prices that can lead to higher unemployment and that is notoriously difficult to reverse.

The programme was set to be carried out until end-September 2016 and wdould in any case be conducted until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2 percent over the medium term, he added.

The Governing Council had decided to change the pricing of the six remaining targeted longer-term refinancing operations, Draghi said.

"As regards the additional asset purchases, the Governing Council retains control over all the design features of the programme and the ECB will coordinate the purchases, thereby safeguarding the singleness of the Eurosystem’s monetary policy" he said.

"The risks surrounding the economic outlook for the euro area remain on the downside, but should have diminished after today’s monetary policy decisions and the continued fall in oil prices over recent weeks."