European Central Bank determined to stick with stimulus plan
Associated Press - Apr 02, 2015
The official account of the European Central Bank's last policy meeting show top officials expressing determination to stick with the full 1.1 trillion euros ($1.2 trillion) of their planned stimulus - even though the 19-country eurozone economy shows signs of finally picking up.
Minutes to the March 5 meeting of the bank's governing council in Nicosia, Cyprus released Thursday showed that "all the members" agreed there was "no room for complacency."
Members stressed that the stimulus, which involves the monthly purchase of 60 billion euros worth of government and corporate bonds with newly created money through September 2016, "had to be fully implemented and supported by appropriate communication." The purchases started March 9.
The bank's intentions have a significant impact on a wide array of people - from stock and bond investors to European exporters, U.S. corporations and consumers.
The stimulus - at a time when the U.S. Federal Reserve is preparing to move in the opposite direction by possibly raising interest rates this year - has sent the euro plunging against the dollar. That helps eurozone exporters but has burdened earnings for U.S. corporations that do business in Europe. The stimulus has also helped shore up European stock markets as well as government bonds.
