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ECB surprises markets with rate cut, asset purchases
ECB surprises markets with rate cut, asset purchases

The European Central Bank, in a surprise move Thursday, cut its main interest rate to rock bottom and said it would buy certain securities and bonds in a bid to stimulate growth and combat increasing risks of deflation. In addition to lowering its key bank-lending rate to a fresh low of 0.05%, from 0.15%, the ECB pushed the bank-deposit rate further into negative territory, making it more expensive for lenders to park cash at the central bank. The actions announced in Frankfurt, Germany, boosted stock prices and sent the euro down to below $1.30, the lowest in more than a year. The euro has fallen about 3% against the dollar in the last month alone, and analysts expect a further...

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