ECB announces series of measures in a bid to boost economic growth

The ECB has slashed interest rates to record lows, put in place a lending scheme for small businesses and signalled it will embark on an asset-backed securitisation programme in an effort to lift inflation and stoke economic growth across the region.

Instead of one ‘big bazooka’ similar to the ‘outright monetary transactions’ programme announced in September 2012, ECB president Mario Draghi announced a series of measures aimed at reversing the bleak outlook across all of the eurozone’s macroeconomic indicators.

The threat of deflation remains one of the biggest challenges for policymakers. From June 11, banks will be charged for keeping money on deposit with the ECB. Mr Draghi announced that the interest rate on its deposit facility has been cut to -0.10%.