The European Central Bank (ECB) has expressed a rather gloomy outlook for the eurozone economy for the year 2009. The Bank predicted that the countries’ economy will contract between 4.1% and 5.1% this year, worse than previously expected.
In addition, the ECB announced that next month it would start to implement its “quantitative easing” policy through which it will purchase EUR 60B worth of corporate bonds in an effort to increase the quantity of money in the economy. Interest rates will remain at 1%.
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