European Central Bank decides on buying sovereign bonds … – Reuters

European Central Bank decides on buying sovereign bonds … – Reuters

By Paul Carrel and John O’Donnell

FRANKFURT (Reuters) – The European Central Bank on Thursday launched its latest resource monetary policy by announcing a program of purchases of government bonds to inject hundreds of billions of euros in new money to the ailing eurozone economy.

The ECB said it will buy government bonds of governments from March through September 2016 despite the opposition of the Bundesbank, the German central bank , and concerns in Berlin that could allow prone countries to raise spending curb its economic reforms.

Along with existing to buy private debt and channeling hundreds of billions of euros in cheap loans to banks schemes, the new quantitative easing plan will allocate 60,000 million euros per month to the economy, said ECB President Mario Draghi.

For September next year we will have created more than 1 billion euros.

” The combined monthly purchases of government securities and private sector will amount to 60,000 million euros, “Draghi said at a press conference.

“It will be held until the end of September 2016 and, in any case, until we see a sustained path of inflation adjustment,” he said.

You will buy bonds on the secondary market in such proportions that the larger economies, from Germany down will have the biggest acquisitions of its debt by the ECB than smaller countries.

The prospect of drastic action by the ECB had led the Swiss central bank to abandon its roof for frank while Denmark, whose currency is pegged to the euro, was forced to cut interest rates anticipation of a surge of money. Continued …