The ECB is the first major central bank to introduce negative interest rates, which will see it become cheaper for banks to lend money to businesses. 

 

Japan, Hong Kong and Australian stocks initially² rose in reaction before giving up their gains in later trade.

 

The muted response comes despite a strong rally on Wall Street.

 

The S&P 500 and Dow Industrial Average closed at new record highs on Thursday on the new stimulus³ measures out of Europe.

 

European stock markets and the euro currency also logged gains on Thursday.

 

 

The ECB announcement saw it cut the deposit rate for banks to zero from -0.1% and reduce the benchmark interest rate to 0.15% from 0.25%.

 

In addition to the interest rate cuts, the ECB will offer a package of cheap long-term loans to banks which are worth up to 400bn euros.

 

ECB President Mario Draghi also signalled there may be more easing measures to come. 

 

"Are we finished? The answer is no," he said in response to a question about the potential for more stimulus.

 

CMC Markets analyst⁴ Max Ho called the ECB's moves "well-telegraphed". 

 

"We witnessed history in the making," he said. "While this move to cut deposit rates to a negative is considered to be bold and unprecedented⁵, some observers are not convinced that it will have a significant impact on existing bank lending."

点击收听单词发音