— This is the script of CNBC's news report for China's CCTV on September 13, 2019, Friday.
Let's have a look over the specific content of the decision, first, deposit rate in Eurozone were cut by 10 basis points to -0.5%, which is a history low, but no changes to other major interest rates.
On unconventional monetary policy front , ECB launched QE again, starting from Nov, the ECB will make 20 billion euros of net asset purchases per month for a long time that is expected to end till the next round of increasing rates.
Mario Draghi，President of the European Central Bank
We expect them to run for as long as necessary to reinforce the accommodative impact of our policy rates, and to end shortly before we start raising the key ECB interest rates.
Treasury bond yield in Eurozone dived after the ECB announcing its decision.
Euro dollars against U.S. dollars dropped under 1.1 but claws back some gains now.
Both EU and U.S. stock markets closed high on Thursday trading, 3 U.S. stock indexes were close to their history high. Asia stock market was also fueled on Friday, but without a big rally. That is because this decision is in line with the market's expectation and investors remain cautious before the trade talk between U.S. and China. While QE is good for equities, it also highlights the serious problems faced by the euro zone.
ECB had lowered this year's and next year's GDP growth forecasts for the Eurozone; it now expects growth of 1.1% this year and 1.2% in 2020. Mario Draghi told a news conference that the Eurozone was suffering from the "prevailing weakness of international trade in an environment of prolonged global uncertainties".
He believes that now, monetary policy should play a major role under current economy circumstance, and calls for European countries that have financial surplus take actions immediately.
ECB's latest move also screwed Trump up, he tweeted Thursday that the ECB is "succeeding" in "depreciating the Euro against the VERY strong Dollar, hurting U.S. exports" while the Federal Reserve "sits, and sits, and sits.
All of that puts a path for the fed to cut rates this month, how much it will cut is the only hang in the air problem now.