The European Central Bank is to inject least €1.1 trillion into the ailing eurozone economy to try to stimulate demand.
The bank will create money to buy bonds, or debt, from member states, in what is known as quantitative easing.
The bank also says eurozone interest rates are being held at the record low of 0.05 per cent, where they have been since September 2014.
Latest figures show the eurozone is suffering deflation, creating the danger that growth will stall as businesses and consumers hold of spending as they wait for prices to fall, the BBC reports.
- Explainer: What the European Central Bank does
ECB president Mario Draghi said the programme would begin in March.
Mr Draghi said the programme would be conducted "until we see a sustained adjustment in the path of inflation", which the ECB has pledged to maintain at close to 2 percent.
The value of the euro fell following the bank's announcement.
The New Zealand dollar, meanwhile, continued its recent decline following the ECB's announcement.
Analysts said global investors were also selling New Zealand dollars on speculation the Reserve Bank may cut the official cash rate later this year due to slowing inflation.
The dollar has fallen about 4 percent since Monday, and most analysts are betting it will continue to decline.
- BBC / AFP / RNZ