Friday, May 15, 2015
Until September 2016, the ECB buys bonds en masse in order to stimulate the economy in the euro zone. Federal Reserve Chairman Draghi however admits that the progress made so far were still relatively low.
The actions of the European Central Bank (ECB) have the opinion of Federal Reserve Chairman Mario Draghi have positive effects on investment, private consumption and the development of consumer prices. In a speech in Washington the Italians reaffirmed that the ECB would continue as decided its purchasing program of securities. However, he admitted that progress in the euro area one-councils are reluctant to fight a sluggish economy and an excessively low inflation.
“After nearly seven years of a crippling crisis companies and households take very hesitant risks in buying. ” Therefore, it will still take some time before the ECB’s measures will lead to the desired success, so Draghi. The ECB buys in March public bonds in a volume of monthly € 60 billion, to more to stimulate the economy of the euro zone and to bring inflation back to the appropriate area of just under two percent.More about
Draghi thus occurred in the financial markets be germinated counter fears that the recent moderately positive economic data and rising inflation in Europe could lead the ECB to end its bond purchase program prematurely. The program will run until September 2016.
The buy-back program is to run until September 2016 and is controversial even in circles of the ECB. So last Bundesbank chief and ECB Governing Council member Jens Weidmann had renewed his objections in the “Handelsblatt”.