ECB cuts rates causing euro to weaken dramatically

The European Central Bank has cut rates again causing the euro to weaken rather dramatically across the board.

It cut the main lending rate (the minimum rate it charges banks to borrow from it) to 0.05% (effectively zero).

It also cut the deposit rate (the rate it will pay banks to deposit money with it overnight) to -0.20% (so increasing the cost to a bank to hold money with it).

These measures are aimed at forcing banks to lend by making it cheaper to borrow money and by charging them to hold money on deposit rather than lending it out.

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