Mario Draghi unleashed his most audacious stimulus package yet,unexpectedly testing the lower bounds of all the European CentralBank's interest rates and expanding its monthly bond purchases by athird. The euro sank and stocks rose.
The 25-member Governing Council, meeting in Frankfurt onThursday, cut the rate on cash parked overnight by banks by 10basis points to minus 0.4 percent and lowered its benchmark rate tozero. Bond purchases were increased to 80 billion euros ($87billion) a month from 60 billion euros, and corporate bonds willnow be eligible. A new series of long-term loans to banks willbegin in June.
The ECB president will hold a press conference at 2:30 p.m.local time to explain the measures.
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