European Central Bank to Expand QE, Cuts Interest Rates Further

Frankfurt (Mar 10)  The 25-member Governing Council, meeting in Frankfurt on Thursday, cut the rate on cash parked overnight by banks by 10 basis points to minus 0.4 percent, and its benchmark rate to zero. Bond purchases were raised to 80 billion euros ($87 billion) a month, starting in April, and corporate bonds will now be eligible. Draghi will hold a press conference at 2:30 p.m. local time.

Market expectations for more stimulus had risen after the ECB said it would review its program as persistent weakness in consumer prices and a Chinese slowdown threaten to undermine the euro-area recovery.

Source: Bloomberg