By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Christine Lagarde, managing director (MD) of the International Monetary Fund (IMF) on Thursday applauded the decision of the European Central Bank (ECB) launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program.

“We welcome the measures announced today that will strongly reinforce the ECB’s accommodative stance. The planned expansion of the ECB’s balance sheet will help lower borrowing cost across the euro area, raise inflation expectations and reduce the risk of a protracted period of low inflation. These measures will also strongly increase the prospects of the ECB achieving its price stability mandate.

“It remains essential that the accommodative monetary stance is supported by comprehensive and timely policy actions in other areas, not least structural reforms to boost potential growth and ensure broad political support for demand management policies,” Lagarde said.

Mario Draghi, president of the ECB who announced the measure said the program will be open-ended, lasting until at least 2016.

“Inflation dynamics have continued to be weaker than expected. While the sharp fall in oil prices over recent months remains the dominant factor driving current headline inflation, the potential for second-round effects on wage and price-setting has increased and could adversely affect medium-term price developments,” Draghi affirmed.