“ECB Cuts Rates Unexpectedly as Low Inflation Threatens Recovery”

“The ECB cut the main interest rate at which it lends to banks to 0.25%”

“The ECB showed the need to act”

Wait a minute.

The interest rate that matters for monetary policy (this is the rate on loans between banks) is already below 0.1%, so today’s move is not going to get this any lower!

Today’s move does nothing except sending another signal that the Euro economy is in full deflation, and the ECB is likely to keep the current rates that low for a longer time.

No actual change of interest rates.

And no impact on the real economy, anyway.

Just more evidence that the overall European deficit is too low!