Mario Draghi today announced an expansion of the ECB’s monetary stimulus programme in a continued effort to boost inflation and stimulate growth in the Eurozone. This expansion will be along a number of dimensions: a cut to the ECB’s deposit rate by 10 basis points to minus 40 basis points, an increase in its quantitative easing asset purchase programme to 80bn euros a month which will also include investment-grade non-bank bonds and four more long-term borrowing long-term borrowing operations. The immediate response was a sharp weakening of the Euro, however this was quickly reversed due to the fact that Draghi was very cautious about the prospect of any further rate cuts, which the markets interpreted as an indication of a floor on rates.