ECB still easing down the road

The ECB  announced Thursday that it will keep rates at the zero bound level and will continue EQE for an extended period of time.

The plan prior was to keep buying bonds and equities until March 2017, but today the ECB said it can extend its purchasing of securities past that date as Europe is wracked negative interest rates and near zero growth.

European chief Mario Draghi said that the ECB will continue purchasing bonds both corporate and sovereign issues as well as equities of European firms for an extended period of time.

I believe in the press conference later Thursday, Draghi will have to broaden the definition of what securities the ECB can buy as issuance of existing bonds has dried up.

 

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