— This is the script of CNBC's news report for China's CCTV on March 9, Monday.
The European Central Bank kicks off its 60 billion euro-a-month bond purchases today.
Buy how long will this QE program last?
ECB President Mario Draghi left doors open whether to extend QE program beyond sept 2016 or even scrap it earlier, all depending on how inflation develops over the course of next year.
Apart from that draghi was very upbeat about economy - expecting avg gdp to reach almost 2% next year.
The ECB also revised its inflation forecast for this year to 0 percent, down from its previous 2015 inflation forecast of 0.7 percent, but raised the 2016 forecast to 1.5 percent from 1.3 percent, and the 2017 forecast to 1.8 percent.
(SOUNDBITE) (English) ECB PRESIDENT, MARIO DRAGHI, SAYING:
"Supported by the favourable impact of our recent monetary policy measures on aggregate demand, the impact of the lower euro exchange rate and the assumption of somewhat higher oil prices in the years ahead, inflation rates are expected to start increasing gradually later in 2015."
Draghi said that the ECB will not buy Greek bonds under its new QE program for a "variety of reasons".
The ECB can only buy investment-grade bonds, but Draghi said the bank would be ready to reinstate the waiver on Greek paper, providing the conditions are in place for a successful completion of the country's review.
Apart from that, the bank's also planning on buying bonds which have negative yields but they will be kept at their deposit rate. Analysts told CNBC, they've seen money flowing into Eurozone even before the QE, which means, Europe's equity market might outperform the US market this year.
[Dan Scott, Vice President, Credit Suiss] "Really, overall, what this has to do is to provide support the rewrite of these risk assets, I think you are going to see the glows continue into European equity. We've seen that, but we are going to see furthur because it changes the calculus of what assets you want to buy."
With Euro keeps going weaker, exporters are going to be big winners, as Warren Buffett bought Detlev Louis last month.
However, if we take a look at the United States, that might be a different situation. Strong Feb nonfarm job data have made investors worried that Fed might start to increase interests rate as early as this June.
[Andrew] "My Continuous concern is that incasing interest rates rite now is only going to strengthen the USD, you could have a blow back reaction with flows or funds coming back into the USD as the EU is pushing yields down to the negative and thus we are going to have short term interest rates increasing in the US vs the longer term interest rates are actually falling, we are going to have steepening of the yield curve..something that the Fed doesn't want to do."
Now, all eyes are on next week's Fed meeting, starting from March 16. Qian Chen, reporting from CNBC.