1 The deposit rate for commercial banks was cut to -0.1% from zero. It means banks will now have to pay for the privilege of parking their money with the ECB. ECB officials expect banks to withdraw funds and lend them to households and businesses.
2 The central bank cut its main interest rate to a new record low of 0.15% from 0.25%. It is possible lenders will pass on the cut to borrowers, although the benefit to the average household is quite small and businesses remain reluctant to borrow after GDP growth almost ground to a halt in the first quarter.
4 The ECB also said it would stop sterilising the bonds it bought during the height of the eurozone crisis, which means it will stop taking money out of the system elsewhere to offset those purchases. Previously, to protect against charges that it is simply printing money to fund budget deficits, the ECB bought sovereign bonds in the secondary market and offset these purchases by taking an equal amount of money out of circulation.
5 Draghi said the ECB was preparing to pump cheap funds directly into the economy via a programme of quantitative easing (QE). The US Federal Reserve, the
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