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The ECB revised down its projections for the eurozone economy, forecasting annual growth of 0.9 percent in 2014 (Photo: Fotolia)

Draghi cuts interest rate, launches new stimulus measures

The European Central Bank has cut interest rates to a historic low and unveiled a raft of bond-buying programmes to stimulate lending, in a move that surprised financial markets and analysts.

The Frankfurt-based bank cut the eurozone's basic interest rate by 0.1 percent to 0.05 percent on Thursday (4 September) and its other interest rates by 0.1 percent across the board.

It will also launch an asset purchase programme to buy debt products from banks starting after the next meeti...

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The ECB revised down its projections for the eurozone economy, forecasting annual growth of 0.9 percent in 2014 (Photo: Fotolia)

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