First rise in interest rates still some time away

The first increases in interest rates still appear to be sometime in the distance despite ECB president Mario Draghi signalling that the central bank was preparing to scale back its huge stimulus programme that has helped boost economic growth in the eurozone, say economists.

Traders were left waiting after the ECB’s initial statement reaffirmed its ultra-easy policy stance, but leaped on the euro as Mr Draghi said the bank’s staff were looking at how to wind down its €60bn a-month buying programme.

Against the dollar, the euro jetted as high over $1.20 from under $1.197 before Mr Draghi spoke, while European stocks saw their day’s gains halved at the prospect of ongoing euro strength.