"The European Central Bank shocked financial markets by cutting its main interest rate to a new record low of 0.25 percent on Thursday, responding aggressively to a slump in inflation way below its target".
"The 23-man Governing Council had faced intense market scrutiny in the run-up to Thursday's decision after a surprise slump in euro zone inflation to 0.7 percent in October - far below the ECB target of just under 2 percent.
But market pricing had largely shown investors backing off bets of an actual cut in rates this early.
"Deflationary risks and the stronger euro seem to have motivated the ECB's move. It is obvious that the ECB under president Draghi has become much more pro-active than under any of his predecessors,said CARSTEN BRZESKI, of ING.
