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Draghi: ECB Done for Now on Rates

  • ECB expands QE purchases by a third, says more TLTROs to come
  • Policy makers striving to stave off euro-area deflation
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Is the ECB Done With Lowering Borrowing Costs?

The European Central Bank can cut interest rates further but isn’t likely to, Mario Draghi said after unveiling stimulus on Thursday that brought borrowing costs to record lows, expanded asset purchases and offered a borrowing subsidy to lenders.

“It’s a fairly long list of measures, and each one of them is very significant and devised to have the maximum impact in boosting the economy and the return to price stability -- we have shown we are not short of ammunition,” the ECB president told reporters in Frankfurt after a two-day meeting of the Governing Council. “From today’s perspective, we don’t anticipate it will be necessary to reduce rates further.”