eurozan rescue plan

Ralph Atkins

The European Central Bank has announced it has bought €16.5bn worth of eurozone government bonds so far as part of the eurozone rescue plan announced last week, and unveiled how it will make good its pledge to counter any inflationary side effects.

The scale of the ECB’s intervention was at the low end of analysts’ expectations, but still broke new ground for the guardian of the euro currency, which had previously forsworn buying government bonds outright.

The move split the ECB’s governing council amid fears the move would undermine polices aimed at ensuring price stability.