ECB cuts interest rates to record lows

The European Central Bank surprised financial markets on Thursday by paring back its key interest rates even further to new all-time lows.

Amid growing concern the single currency area is on the verge of deflation, the ECB cut its central “refi” refinancing rate to 0.05 percent from 0.15 percent. It lowered the deposit rate to minus 0.20 percent from minus 0.10 percent and trimmed its marginal lending rate to 0.30 percent from 0.40 percent, it said in a statement.