Carney says ECB action helps 'preserve prosperity in Europe'

[DAVOS] Bank of England Governor Mark Carney on Friday welcomed the European Central Bank's decision to launch a massive bond-buying programme, saying it would help maintain prosperity in Europe.

"I welcome steps that the ECB took yesterday to preserve medium-term prosperity in Europe," he told business and political leaders meeting in Davos.

"It doesn't deliver prosperity, but it creates the conditions for it," he said.

The ECB on Thursday launched a 60 billion euro (US$70 billion) bond-purchasing programme per month through September 2016 to stimulate the struggling eurozone economy and prevent the bloc from sliding into deflation.

Mr Carney also underlined the importance of preventing a spiral of falling prices.

"What's absolutely crucial is that we have inflation in the right spot," he said.

AFP