2014-24 ECB starts quantitative easing

The ECB held its rate setting meeting and decided to keep its interest rate at 0.05% ($5 per $10 000 for a year). It also announced that it will be buying various bonds to increase liquidity in the markets and spur lending.

All this because the Eurozone economy is in poor shape:
- inflation is 0.3%; the target is "below 2%"
- growth is slow
- the Italian and German economies are shrinking

Here is what the ECB head said:

"The recovery is likely to continue to be dampened by high unemployment, sizeable unutilised capacity and continued negative bank loan growth to the private sector.

"In particular, the recent weakening in the euro area's growth momentum, alongside heightened geopolitical risk, could dampen confidence and, in particular, private investment."