ECB pulls out all the stops with stimulus boost

The ECB unleashed some of its last remaining stimulus weapons yesterday, cutting all three of its interest rates and expanding asset-buying to boost the eurozone economy and prevent ultra-low inflation becoming entrenched.

It slashed its inflation expectations for this year but also suggested that interest rates would go no lower.

In moves that briefly pushed the euro 1% down against the dollar, the ECB cut its deposit rate deeper into negative territory and increased monthly asset buys to €80bn from €60bn, above expectations of a hike to €70bn.