Mario Draghi, President of the European Central Bank (ECB), addresses the media during the ECB's monthly news conference in Frankfurt, September 4, 2014. REUTERS/Kai Pfaffenbach
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The European Central Bank cut interest rates to a fresh record low Thursday and launched a new scheme to push money into the flagging eurozone economy.In a series of measures underscoring growing concern about the currency bloc's health, the ECB cut its main refinancing rate to 0.05 percent from 0.15 percent previously and drove the overnight deposit rate deeper into negative territory, now charging banks 0.20 percent to park funds with it.The forecast for inflation, now running at just 0.3 percent, was cut to 0.6 percent, rising to 1.1 percent in 2015, still way below the ECB's target of close to but below 2.0 percent.Though other central banks have printed money in vast amounts, some members of the ECB's 24-member policymaking council are resistant.What is more, the ECB will want to see the impact of a four-year loan offer to banks, announced in June but only launching later this month, before taking the ultimate step.
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