Mario Draghi became the first major central banker to cut a key interest rate below zero as he unveiled a series of radical measures to stave off a crippling bout of deflation, and signalled his willingness to take further action.
As well as rate cuts, the European Central Bank president announced a package of up to €400bn of cheap loans for eurozone banks in an attempt to boost lending to the region’s credit-starved small businesses.
Mr Draghi indicated that policy makers were still willing to embark on some kind of quantitative easing if ultra-low inflation persists. “Are we finished? The answer is no.”
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