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ECB Readies Asset Purchase Scheme
The European Central Bank says the asset-buying program it announced in September to stimulate the eurozone's slow-moving economy will begin this month and run for two years.
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The European Central Bank says the asset-buying program it announced in September to stimulate the eurozone's slow-moving economy will begin this month and run for two years.
The ECB still has not indicated how much money it will create to fund the plan, which will buy private debt products but not government bonds. Bank chief Mario Draghi says the initiative will target specific but unnamed market segments and have a "sizeable impact" on the ECB's balance sheet.
Economists had been urging the bank to take more powerful action to revive the economy and avert a dangerous deflationary spiral. Economic growth in the eurozone was virtually zero between April and June.
The ECB considers a 2% rate healthy. Last month's inflation rate for the region slumped to 0.3%, its smallest in nearly five years. The bank has predicted inflation will be only 0.6% this year and 1.1% in 2016.
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