The European Central Bank (ECB) unexpectedly cut interest rates to spur economic growth and stave off the threat of deflation.
The ECB's 24-member Governing Council reduced all three of its main interest rates by 10 basis points. The benchmark rate was lowered to 0.05 percent and the deposit rate is now minus 0.2 percent. The euro slid, as a reduction in the benchmark rate was predicted by just six of 57 economists in a Bloomberg News survey.
The rate cuts come three months after an historic package of stimulus measures, and two weeks after Draghi signaled he was ready to act again. Additional measures he could unveil later may include a purchase program for asset-backed securities (ABS) or a larger program of quantitative easing that risks dividing policy makers.
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