European Central Bank (ECB) President Mario Draghi has announced an asset purchase programme worth about €1trn.
The central bank will begin a bond-buying programme in March, purchasing €60bn of assets each month until the end of September 2016. "Today's measures will decisively underpin the firm anchoring of medium to long term inflation expectations," Draghi said. The euro initially dropped 1% against the dollar in response, to a fresh 11-year low of $1.1513, before bouncing slightly as traders tried to interpret the implications of Draghi's announcement. European and UK stock markets rallied on the news. The FTSE 100 gained 0.7% as Draghi was speaking, while the Euro Stoxx 50 gained around...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes