EBC and Quantitative Easing

Today the  ECB interest rate was kept at 0.05%  – but the European Central Bank also unveiled the details of its quantitative easing programme, which it is hoped will lift the  euro zone economy out of stagnation.

The €1 trillion scheme, was first announced in January and will begin on March 9th.
The scheme will see the ECB buy €60 billion  worth of government bonds each  month until  September 2016.

The bank hopes that in time the stimulus measure will boost growth and lift inflation.
The Euro fell to a 7 year low against Sterling today

Goldman Sachs said last year that quantitative easing could mean the euro could fall to £0.65 compared to the £0.72p it is worth today.

Sterling was helped against the Euro after the Bank of England policy makers left interest rates unchanged at 0.5%, but an improving UK economy suggests that interest rates are unexpected to rise at some point over the next year.