The European Central Bank will Monday start buying up government bonds. The ECB has raised growth expectations.
That President Mario Draghi, the ECB announced Thursday at an explanation of the interest rate decision. The details of the buy-back program are published on the ECB’s website. The buy-back program totaling € 60 billion per month was announced on January 22, but had to follow the exact details and the exact start date in March.
In the press conference in Cyprus, where the ECB met, Draghi said that the negative yield that is at an increasing share of government bonds to see, will not prevent forms. There will also bonds with negative interest rates are bought, the lower limit of 0.20%; the interest rate on the deposit facility own. This means that the ECB still bonds with shorter maturities can buy.
Higher growth forecasts
drop in the price of oil, the weaker euro and the new monetary impulse that led to improved growth prospects as Draghi announced in January. From new staff projections suggest that the economy in 2015 is expected to grow by 1.5% (forecast was 1% in December). 2016 is now forecast at 1.9% (was 1.5%) and for 2017 at 2.1%. “The risks are on the downside, but declined due to lower oil prices and the monetary policy measures taken.
However, the inflation forecast for 2015 is lower released by the low oil prices. We expect inflation to 0% this year (expected in December was 0.7%). Vo0r 2016 is now expected inflation of 1.5% (1.3%) and 1.8% in 2017.
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