European Central Bank ‘takes out bazooka’ with US$1.25 tril. QE stimulus package
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The European Central Bank says it's going to buy an unprecedented amount of bonds‚ pumping money into the stagnant eurozone economy.
The central bank said Thursday that its purchases of government and private-sector bonds worth 60 billion euros‚ or roughly 68 billion U.S. dollars will begin in March‚ and continue through at least September of next year‚ or even longer.
The total will reach some one.three trillion dollars‚ MUCH more than the 568 billion dollars initially expected.
Speaking in Frankfurt on Thursday‚ ECB President Mario Draghi said the central bank would also keep eurozone interest rates at zero.0-5 percent.
The decision comes as the eurozone is showing signs of going into a deflationary spiral.
It's hoped the massive stimulus will improve the bloc's sluggish exports and channel more investments into stocks.
Not everyone is happy about the decision.
German Chancellor Angela Merkel‚ for instance‚ wants countries like Greece and Italy to tighten their belts‚ and stick to their original economic reforms.
"Two things are part of this: a willingness to show solidarity‚ which we will continue to show‚ coupled with a willingness to take responsibility which I am sure will continue to be shown by Greece."
The ECB money will also include some existing programs.
Greece will be included under a bailout program‚
but with some additional criteria‚ as such countries have worse economic conditions.
Shin Se-min‚ Arirang News.
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