The euro shot up against all major currencies this afternoon following Mario Draghi's announcement that the European Central Bank is to cut deposit rates to -0.3% and extend its asset purchasing programme.
Speaking at a press conference following the central bank's policy meeting today, Draghi (pictured) said the ECB will cut the interest rate on overnight bank deposits from -0.2% to -0.3%, with effect from 9 December 2015. Many expected a 20 basis point cut to the deposit rate, down to -0.4%. The ECB will also extend the monthly €60bn quantitative easing programme to run until the end of March 2017 or "until the ECB council sees a sustained adjustment in the path of inflation". The euro rose by nearly 2.3% against the dollar to $1.0860 and up 1.5% against sterling, to trade at €1.387...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
