European Central Bank cuts interest rates for first time since 2016

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The European Central Bank (ECB) has cut interest rates for the first time since 2016, while introducing a sweeping stimulus package in an attempt to kick-start a lacklustre eurozone economy and stave off recession.

The central bank announced that it had cut its deposit rate by 10 basis points (BPS) to an all-time low of -0.5%, and will restart quantitative easing at a pace of €20bn (£17.8bn) a month from November.

In a statement, the bank said that interest rates would “remain at their present or lower levels” until it had seen inflation reach acceptable levels.

The euro fell to its lowest level in more than a week on the news.

A day after accusing the Federal Reserve of being “boneheads”, US President Donald Trump took to Twitter to once again attack the US central bank.

“European Central Bank, acting quickly, Cuts Rates 10 Basis Points” Trump wrote shortly after the announcement.

“They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting U.S. exports…. And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!”, he added.

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