Euro rallies as Draghi disappoints

Extends QE to at least March 2017

The euro shot up against all major currencies this afternoon while equity markets dropped as ECB president Mario Draghi failed to deliver the stimulus package investors had expected.

Speaking at a press conference following the central bank's policy meeting today, Draghi (pictured) said the ECB will cut the interest rate on overnight bank deposits from -0.2% to -0.3%, with effect from 9 December 2015. Many expected a 20 basis point cut to the deposit rate, down to -0.4%. The ECB will also extend the monthly €60bn quantitative easing programme to run until the end of March 2017 or "until the ECB council sees a sustained adjustment in the path of inflation". The euro rose by nearly 2.3% against the dollar to $1.0860 and up 1.5% against sterling to trade at €1.3871...