In addition to cutting interest rates to historic lows, Draghi unveiled a slew of steps aimed at boosting liquidity in the 18-member eurozone so as to break credit bottlenecks in the currency bloc and spur growth in the region's fragile economy.
"We think this is a significant package," Draghi told a press conference. "Are we finished? No."
"The governing council is unanimous in its commitment to using also unconventional instruments," Draghi told reporters referring to measures other than changes in interest rates.
He said the bank was at present carrying out "preparatory work" on a programme of direct purchases of asset-backed securities as part of possible next steps to ensure the eurozone remained on an economic growth path.
At the same time, Draghi dampened expectations of further cuts in the cost of money after the bank delivered a 10-basis-point reduction in both its benchmark refinancing and deposit rates.
This reduced the refinancing rate to a record low of 0.15% and lowering the deposit rate to minus 0.1%.
Taking the deposit rate into negative territory has the effect of charging banks for depositing funds with the ECB and represents the first time that a major central bank has cut rates to below zero.
"For all practical purposes we have reached the lower band," Draghi said, but added he could not exclude some minor technical changes.
The reductions in borrowing costs were combined with a new targeted longer-term refinancing operations as well as a prolongation of the fixed-rate full allotment tender procedures.
ECB hopes these plans will boost bank lending in particular to credit-starved small-to-medium sized businesses in economically vulnerable parts of the eurozone such as Spain,
The bundle of measures announced by Draghi sent shares higher while pushing the euro to a four-month low of
The eurozone blue-chip Eurostoxx 50 index was 0.7% higher at 3,261 points, while
Annual inflation in the currency bloc weakened more than forecast to 0.5% in May, according to official data released this week.
This took consumer prices deeper into what Draghi has described as the danger zone - inflation below 1%.
However, he once again rejected suggestions that the eurozone faced a period of deflation similar to that which haunted
"We don't see deflation," Draghi said adding there was no evidence of the hallmarks of deflation emerging in the eurozone such as households postponing purchases in anticipation of lower prices.
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