Mario Draghi has thrown the kitchen sink at the eurozone, by slashing the headline interest rate to zero and increasing the bank’s money-printing programme * ECB slashes growth and inflation forecasts * ECB press conference underway <- highlights start here * ECB shocks markets with new stimulus <- how the news broke * Summary: ECB cuts rates and boosts QE 3.12pm GMT There is a “strong argument” that the ECB has fired its bazooka today, says CHRISTOPHER VECCHIO, currency analyst at DAILYFX. He adds that the new measures to boost bank lending should help the eurozone’s struggling periphery: Considering that only four Euro-Zone countries are on the wrong side of the net-borrowing/lending equation vis-à-vis the European Central Bank and National Central Banks (per Bank of Spain and Wall Street Journal), these new measures are most likely going to help reduce financial credit risk in Italy, Spain, Greece, and Portugal more than anywhere else.” 3.08pm GMT Bank shares are soaring following the news that the ECB will give them ultra-cheap loans: peripheral banks...greek, spanish, italian...still outperforming as @ecb expands bond buying&includes corporate debt pic.twitter.com/rNc9AVV9Zp Continue reading...
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