ECB will continue with QE policy

The European Central Bank has no plans to curb or curtail its money-printing programme although it expects eurozone economic recovery to broaden and strengthen.

Last month the ECB embarked on an asset-buying programme with 60 billion euros (£43.17bn) a month of new money, which it has said will last until at least September 2016.

“Our focus will be on the full implementation of our monetary policy measures,” ECB President Mario Draghi said yesterday.

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“Purchases are intended to run until the end of September 2016 and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below, but close to, 2 per cent over the medium term.”

At the last count, eurozone inflation was running at -0.1 per cent.

Draghi said he was surprised at speculation about exiting the programme early since it was only a month old.

Earlier, the ECB left interest rates at record lows as its bond-buying scheme shows early signs of perking up the region’s economy.

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The main refinancing rate, which determines the cost of credit, is now just 0.05 per cent, while the ECB’s deposit rate, which means banks pay to park funds at the central bank and has the most influence on market rates, is -0.2 per cent.