ECB emphasizes commitment to bond-buying plan

April 2, 2015 12:03 PM

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ECB emphasizes commitment to bond-buying plan

After years of promises and various liquidity programs, ECB President Mario Draghi announced in January that the bank would start to buy sovereign bonds in a quantitative easing (QE) program. The bank started its massive 60-billion-euro-a-month ($66.3 billion) bond-buying program on March 9.

By purchasing bonds, yields are suppressed, meaning that euro zone countries can finance their debts at lower prices and help with the recovery process. It also means investors are pushed into riskier areas of the market, which also hopefully stimulates lending and growth.

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