The ECB Quantitative Easing programme will be launched on March 9 with the purchase of euro area government bonds, at a rate of €60 billion per month, ECB Governing Council President Mario Draghi has said.
“Following up on our decisions of 22 January 2015, we will, on 9 March 2015, start purchasing euro-denominated public sector securities in the secondary market,” Draghi said at a press conference following the ECB Governing Council meeting in Nicosia.
But he hinted that the bond-purchasing programme may continue beyond the end-September 2016 deadline, if necessary.
“They are intended to be carried out until the end of September 2016 and will, 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% over the medium term,” he said.
Draghi pointed out that the ECB QE programme will be more effective if coupled with a continued fiscal reform by the euro area governments.
“The monetary policy measures that we decided in January but also the previous ones to be fully effective first and foremost need strong structural reforms. Otherwise we can provide as much credit as possible, we can refinance the banking system so they can lend as much money with the lowest interest rates but if the structural conditions are not in place there will be little incentive to use this credit,” he said.
CNA/GS/MM/2015
ENDS, CYPRUS NEWS AGENCY