ECB extends QE program until March 2017, cuts inflation outlook, euro surges
REUTERS/Kai Pfaffenbach
The ECB will also broaden its QE program to include the purchase of regional debt, not just sovereign debt, from eurozone members.
Draghi said the ECB will also re-invest its purchased assets until they mature.
Following this announcement, the euro was trading near $1.08 against the dollar, near its highs of the day as the extension of QE - rather than a size increase - seems to have disappointed the market.
On Thursday, the ECB cut its deposit rate to -0.3% from -0.2% in a cut that was widely expected.
The ECB kept the interest rates on its main refinancing operations and the interest rate on the marginal lending facility unchanged at 0.05% and 0.30%, respectively.
The ECB also released its latest economic projections on Thursday, upgrading its 2015 GDP expectations for the euro area to 1.5% from 1.4%, while growth is still expected to come in at 1.7% next year. GDP growth is now expected to hit 1.9% in 2017, better than the 1.8% previously forecast.
Inflation expectations, however, were slightly downgraded.
The ECB still sees 0.1% annual inflation this year, with 2016 inflation coming in at 1% (down from 1.1% previously), and 1.6% in 2017 (down from 1.7% previously).
Draghi also called for increased fiscal spending from euro members, including increased investment in infrastructure, reiterating a long-held call for what he has called "structural reforms" to support the recovery that has been in place for the last few years in the eurozone.
Draghi said euro members should strive for a more "growth friendly" fiscal policy.
In its announcement, the ECB said "further monetary policy measures will be communicated" during the press conference.
Expectations were that we would hear about plans to increase the size of the ECB's 60 billion euro per month quantitative easing program or extend this program past September 2016.
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