5 Mar 2015
European Central Bank to start bond buying on March 9
FXStreet (Mumbai) - The European Central Bank (ECB) President Mario Draghi said today at the press conference that the bank would begin its QE program worth EUR 60 billion per month from March 9.
The President further added that the bank would continue with its monthly purchases until the bank sees evidence of inflation on a sustained path to its target of 2%. Speaking about the efficiency of the stimulus program, Draghi said that credit dynamics have firmed up and the improvement in the consumer and business sentiment will contribute to rebound in inflation.
ECB revises growth forecasts higher
The Central bank revised the 2015 GDP forecast higher to 1.5% from the previous forecast of 1%. The 2016 GDP is seen at 1.9% compared to the previous forecast of 1.5%. GDP in 2017 is seen at 2.1%.
On inflation the President said the consumer price drop is mainly due to cheaper energy and that inflation would stay negative in the months ahead. The bank revised 2015 inflation forecast lower to 0% from the previous forecast of 0.7%. However, the inflation in 2016 is seen rising to 1.5% compared to the previous forecast of 1.3%.
The President further added that the bank would continue with its monthly purchases until the bank sees evidence of inflation on a sustained path to its target of 2%. Speaking about the efficiency of the stimulus program, Draghi said that credit dynamics have firmed up and the improvement in the consumer and business sentiment will contribute to rebound in inflation.
ECB revises growth forecasts higher
The Central bank revised the 2015 GDP forecast higher to 1.5% from the previous forecast of 1%. The 2016 GDP is seen at 1.9% compared to the previous forecast of 1.5%. GDP in 2017 is seen at 2.1%.
On inflation the President said the consumer price drop is mainly due to cheaper energy and that inflation would stay negative in the months ahead. The bank revised 2015 inflation forecast lower to 0% from the previous forecast of 0.7%. However, the inflation in 2016 is seen rising to 1.5% compared to the previous forecast of 1.3%.