The European Central Bank (ECB) has today initiated its quantitative easing (QE) program, a significant step aimed at boosting the Eurozone’s economy. This involves the large-scale purchase of public and private sector assets.
Program Details
Under the QE program, the ECB plans to purchase €60 billion worth of assets each month. These purchases are expected to continue until at least September 2016. The primary goal is to increase inflation, which has remained stubbornly below the ECB’s target of close to 2%.
Asset Purchases
The assets being purchased include:
- Government bonds
- Agency bonds
- Covered bonds
- Asset-backed securities
Expected Impact
The ECB hopes that the QE program will:
- Lower borrowing costs for businesses and consumers
- Increase lending by banks
- Boost economic growth
- Raise inflation expectations
The program’s success will depend on various factors, including the willingness of banks to lend and the overall economic climate in the Eurozone.
