European Central Bank president Mario Draghi unleashed his most audacious stimulus package yet, unexpectedly testing the lower bounds of all the ECB's interest rates and expanding its monthly bond purchases by a third.
The euro sank and stocks rose.
ECB dropped its main refinancing rate to zero from 0.05 per cent, while cutting the deposit rate to minus 0.4 per cent from minus 0.3 per cent, charging banks more to keep their money with the ECB.
The bank also expanded its quantitative easing asset-buying programme to €80 billion (S$120 billion) a month from €60 billion.
"This comprehensive package... has been calibrated to further ease financing conditions, stimulate new credit provision and thereby reinforce the momentum of the euro area's economic recovery and accelerate the return of inflation to levels below but close to 2 per cent," Mr Draghi said at a press conference.
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