European Central Bank to pump €1 trillion into flagging eurozone economy

The European Central Bank (ECB) is expected to announce it will pump up to €1 trillion into the flagging eurozone economy.

ECB president Mario Draghi is widely expected to signal the start of a huge bond purchasing programme, similar to the quantitative easing (QE) policy seen in the UK and US.

The eurozone has suffered deflation in recent months, raising the threat of a damaging spiral of falling prices.

It is hoped the policy will reduce the cost of borrowing, encourage banks to lend and consumers to spend more.

Mr Draghi pledged more than two years ago to do "whatever it takes" to improve stability in the eurozone and experts will be looking for further details of the ECB's plans.