ECB announces new measures to boost Euro economy
The European Central Bank has announced an historic measure to boost the Eurozone economy.
For the first time it will engage in quantitative easing, a move which set to see €1.26 trillion injected into the economy with the aim of halting deflation.
The debt-buying initiative will see €60 billion worth of debt-buying per month over an 18-month period, something which will allow banks and other financial institutions to lend more money.
Announcing the move in Frankfurt, ECB President Mario Draghi, explained why the bank decided to take this course of action.
"Inflation dynamics have continued to be weaker than expected," Draghi said.
"While the sharp fall in oil prices over recent months remains the dominant factor driving current headline inflation, the potential for second-round effects on wage and price setting has increased - and could affect medium-term price developments."
Markets are expected to respond favourably to the ECB move.
In Ireland, some inflation would benefit falling consumer prices, but as collection of separate and independent economies, the move is seen as a gamble across the EU, where individual countries may respond differently.
Irish property consultants Savills also believe the move will drive the commerical property sector here.
