Thursday, January 22, 2015

The ECB support buying government bonds – Swedish Radio

The ECB support buying government bonds – Swedish Radio

The European Central Bank will launch a program to support purchases of government securities of EUR 60 billion per month, says ECB president. Support The purchases correspond 567 billion.

Supporting purchases will last until September 2016 and the aim is to reduce interest rates and boost lending in the euro zone.

– It was speculated first if € 50 billion, now it was 60 billion per month. In this way the ECB will start their printing presses, buying government securities and it comes out of money in the market. The idea is that the economic wheels to get started, says Swedish Radio Germany Correspondent Daniel Alling.

– Inflation has been dangerously low in recent times in the euro zone.

The rise in inflation is expected have positive effects on growth, investment and thereby dampen the high unemployment rate of 11.5 percent in the euro zone.

– If this method of stimulating the functioning of the euro zone, it is good for the Swedish economy . It’s our most important trading area, says Daniel Alling.

ECB president Mario Draghi measures presented on Thursday afternoon and measures similar to those the US, UK and Japan took the last financial crisis in 2008.

The European Central Bank announced earlier today that it retains its key rate at a record low of 0.05 percent.

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