Investing.com - The European Central Bank cut its benchmark interest rate to an all-time low in September, amid ongoing concerns over growth prospects and deflationary pressures in the region, it announced on Thursday.
The ECB said it was cutting its benchmark interest rate to a record-low 0.05% from 0.15%, surprising most market analysts who had expected no change.
The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%.
ECB president Mario Draghi was to comment on the decision at a press conference later in the day.
Market participants will scrutinize Draghi’s comments for clues in regards to the central bank's next course of action in dealing with an ongoing sovereign debt crisis.
EUR/USD was trading at 1.3052 from around 1.3131 ahead of the release of the data, while EUR/GBP was at 0.7938 from 0.7982 earlier.
Meanwhile, European stock markets extended gains. The DJ Euro Stoxx 50 tacked on 1.25%, France's CAC 40 advanced 1.1%, Germany's DAX climbed 0.5%, while London’s FTSE 100 rose 0.4%.