FRANKFURT (Reuters) - The European Central Bank cut interest rates to record lows on Thursday and took its deposit rate below zero, seeking to combat the risk of the euro zone suffering Japan-like deflation.
The ECB cut the deposit rate to -0.10 percent, the main refinancing rate to 0.15 percent, and the marginal lending rate - or emergency borrowing rate - to 0.40 percent.
The decision to cut was widely expected after ECB President Mario Draghi said last month the Governing Council was "comfortable with acting next time" but first wanted to see updated economic projections from the bank's staff.
"Further monetary policy measures to enhance the functioning of the monetary policy transmission mechanism will be communicated in a press release to be published at 3.30 p.m. CET today," the ECB said in a statement.
Markets first turn their attention to Draghi's 1230 GMT (1430 CET) news conference.
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(Writing by Paul Carrel Editing by Jeremy Gaunt)
