The European Central Bank has made the unprecedented step of cutting the eurozone interest rate from 0.05% to zero.
The deposit rate was also cut in today’s announcement, taking it into negative territory at -0.4%, meaning banks will be charged more to keep money with the ECB overnight. The move could raising finance costs for European banks.
In addition, the ECB announced a move to increase its quantitative easing programme, increasing the amount bought back each month from €60bn (£46bn) to €80bn.
The move comes after more member states pressed for action from the ECB to stem a trend towards deflation and help sputtering economies in the eurozone.
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