Mario Draghi the president of the European Central Bank (ECB) suggested the bank may increase the size of its quantitative easing program. Following the announcement stock markets initially rallied with the German Dax rising 2% whilst the FTSE 100 gained 1.3%.

The news came as no surprise in light of increased global uncertainty following the recent decline in global stocks and lower growth. The ECB also confirmed they will keep interest rates unchanged at 0.05%.

Currently the ECB is buying 60 billion euros of sovereign debt a month in a hope to kick start growth across the continent. It is now clear from Draghi’s comments that the ECB will increase its bond buying programme or buy a wider range of assets if required

The news comes only days after former U.S. Treasury Secretary, Lawrence Summers suggested the Federal Reserve should consider restarting a quantatitive easing programme to fight deflation and halt the decline in global stocks. Should his happen it will be the first time in history the central banks of the U.S. Europe and Japan havee implemented a QE programme simultaneously.

Draghi also expects economic growth in 2015 to be lower than previously expected and is predicting sluggish growth in 2016 and 2017.

Despite weakness in global stocks and yesterday’s dovish remarks the gold price is largely unchanged trading at £739.00 per ounce.