ECB to start asset buying programme

The European Central Bank has kept its benchmark interest rate at 0.05% and given details of its asset purchase programme announced last month.

The bank's head Mario Draghi said it would start buying covered bonds this month and other assets in the final three months of the year. He said it would continue to buy assets for two years.

The bank is looking to add liquidity to the financial system, boost lending and lift flagging economic growth.

Covered bonds are those backed by public sector loans or mortgages.

The bank's rate-setting meeting is taking place in Naples, Italy, where protesters have faced riot police outside the Capodimonti Palace, where Mr Draghi is held his press conference.

Protesters expressed anger about austerity measures, unemployment and poverty.
'Unconventional instruments'