ECB's quantitative easing: What does it mean for consumers?

The European Central Bank has unveiled the details of its eagerly anticipated quantitative easing programme, which it is hoped will lift the flat-lining euro zone economy out of stagnation.

The €1 trillion scheme, the first such measure in the central bank's history, was announced in January and will see the ECB buy €60 billion (£46 billion) worth of government bonds a month until 2016.

It will begin on March 9, ECB President Mario Draghi told a news conference after a meeting of the bank's policymakers in Cyprus.

The bank hopes that in time the stimulus measure will boost growth and lift inflation, but there will be effects on individual consumers too.

Here's a few ways that ECB QE could play out for us in Britain:

All that new cash in Europe will drive down the price of the Euro, meaning sterling may be worth a whole lot more.

This is great news for European holidaymakers who should find their spending money goes a lot further.

Goldman Sachs said last year that quantitative easing could mean the euro is worth 65p compared to the 72p it is worth today.

A cheaper euro will also make goods manufactured in Europe cheaper in the UK – so household names imported from Europe like Renault, Nestle, Hellman’s and Dove could get cheaper.

While that sounds great in the short term, it does have risks. Bargain hunters, spotting the trend for goods to get cheaper, might hold off from adding things to their basket in the hope that prices will fall again.

That could send the economy backwards by creating deflation.

The falling euro will also make UK goods more expensive in Europe - Britain's largest trading partner - potentially bringing down demand and hurting firms.

Because QE keeps interest rates low savings will also grow slowly. QE is designed to make inflation – or the rate at which prices rise – pick up again.