ECB cuts rates, restarts QE to fight slowdown as Draghi era ends

The announcement of a new stimulus package is a remarkable turn of events, just nine months after the ECB signaled it was done with ever-loser policy

The European Central Bank cut interest rates further below zero and will start open-ended bond purchases as President Mario Draghi overcame critics of his stimulus policies to make a final run at reflating the euro-area economy.

The Governing Council reduced the deposit rate to minus 0.5% from minus 0.4%, and will buy debt at 20 billion euros ($22 billion) a month starting Nov. 1. Banks will get exemptions from the negative rate for some of their deposits after an outcry from lenders about the squeeze on profitability. Draghi will hold a press conference at 2:30 p.m. in Frankfurt.

The ECB