European Central Bank Cuts Key Interest Rates, Expands Stimulus to Lift Inflation

Global markets are on the rise following a host of stimulus measures just announced by the European Central Bank on Thursday. Its deposit rate was cut from 0.3 percent to 0.4 percent. Its main refinancing rate was reduced to zero, a move that came as a surprise to many economists. Plus, the central bank expanded the pace of monthly bond purchases to 80 billion euros from 60 billion euros, and will also include purchases of corporate bonds. The ECB’s quantitative easing program began around this time last year. The stimulus measures are an effort lift inflation in the eurozone, which remains far from the central bank’s 2 percent target. TheStreet’s Scott Gamm speaks with James Hughes, chief market analyst at GKFX in London.