>> It is the beginning of the end of easy money for the Eurozone. The European Central Bank announcing Thursday, that it is cutting back on its 60 billion Euros a month bond buying program. Which has pumped over 2 trillion Euros into the Eurozone economy.
at scheme launched nearly three years ago, when Europe was struggling to recover from the global economic crisis.
Reuters, Mike Dolan is watching the story.>> I think the ECB is finally moving to scale back its bond buying program, basically because the European economy is doing extremely well. It's growing at its fastest pace in several years. And even though inflation is below the ECB's target, it is starting to move closer to it.
>> In effect, the ECB has been acting as the lender of last resort to European governments. Buying their debt in order to take pressure off the private market. That helped to cut funding costs, revive borrowing, and lift growth. The ECB now saying it will cut those purchases in half.
Down to 30 billion Euros a month. But it also extended the bond buying program's lifespan by nine months, in order to reassure investors.>> There's all sorts of possibilities of a relapse, certainly the political uncertainty through next year will be a factor. The Italian elections we are expecting coming up.
So it won't wanna do anything that jars financial markets at this difficult time. So it'll do it gradually, and keep it going right through next year, albeit at a slower pace.>> The Euro falling around half a percent against the dollar immediately after the news. But the cut in stimulus is not expected to shock financial markets, with the ECB preparing ground for this move weeks in advance.