ECB cuts rates to new low

The European Central Bank has cut benchmark interest rates to a new historic low of 0.15% as it acts to stimulate economic growth and stave off another downturn.

In a series of moves, it has also cut the deposit rate from zero to -0.1%, effectively meaning it will now cost banks interest to deposit money with the ECB. The rate on the marginal lending facility will be decreased by 35bps to 0.40% Speculation the bank would act in June was fuelled after ECB president Mario Draghi (pictured) said last month it was "comfortable" with the idea of cutting rates after becoming alarmed at the strength of the euro. The currency, which hit a two-and-a-half-year high against the dollar last month, had become an increasing source of frustration for expo...