09.03.15

ECB has started to buy first bonds under its massive purchasing program

cep chairman Gerken: Bond purchasing program will only worsen the problems of the Eurozone

ECB Governing Council wants to push up inflation close to 2%

The European Central Bank on Monday started its massive bond purchasing program. It foresees freshly-printed money to the tune of about 60 billion euros a month until at least September 2016. Thereby the central bank wants to bring inflation back to its goal of close to but below two per cent. “The bond purchasing program will only worsen the problems of the Eurozone,” warns cep chairman Lueder Gerken. “By lowering interest rates on government bonds the ECB is taking further pressure to reform from the member states. At the same time, the massive printing of money will lead to misallocations of capital and significantly increase the risk of bubble formation.”