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Euro zone borrowing costs hit new lows on ECB QE plan

Mario Draghi, Chairman of the European Central Bank announced the launch of an aggressive bond buying programme on 22nd January 2015. The ECB has embarked on a large scale quantitative easing programme and will start to but €60 bn a month of private and public debt.
The Quantative easing programme is not only larger than expected, it is also open ended and the programme could be extended beyond 2016.

Foreign investors and international buyers should strongly benefit from the ECB package of measures.

- the euro has weakened substantially and has reached an 11-year low against the dollar and other currencies

- Borrowing costs and rates of French mortgages have reached all time lows and will stay low for the foreseeable future

- Banks and lending institutions will be incentivised to lend and will gradually relax lending criteria. French mortgages will become more accessible.

- Eurozone’s residential and commercial real estate market should benefit in the short to medium term from the removal of uncertainty around potential interest rate raises and currency fluctuations.

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