Thursday, 8 December 2011

ECB Cuts Rate, Relaxes Some Rules to Boost Liquidity

Published: Thursday, 8 Dec 2011 | 9:43 AM ET

The European Central Bank cut interest rates by a quarter of a point on Thursday to counter the twin threats of recession and deflation in the euro zone, and announced further unorthodox measures in an effort to aid the functioning of financial markets.
Mario Draghi

The central bank decided to conduct two long-term refinancing operations at a fixed rate with a maturity of 36 months and to accept single-A rated asset-backed securities as collateral among its non-standard measures to reduce market tension.