Analysts at ANZ explained that the ECB cut the deposit rate by 10bps, increased monthly asset purchases and reduced the refi and marginal lending rates by 5bps. Key Quotes: "Having delivered on the day, things changed quickly during the Q&A session, when Draghi delivered a massive counter punch. In response to a question during the press conference, Draghi said that the ECB does not expect to have to cut rates further, as unless the facts change, the ECB thinks it has done enough. But he then said that deeper cuts in the deposit rate could hurt the banking sector. He indicated that the emphasis of additional easing would come via unconventional policy tools and that interest rates would stay at exceptionally low levels well past the ending of QE. The market interpreted all that as meaning the ECB has reached the limits of its interest rate cutting cycle. Euro area monetary conditions tightened as a result and EUR/USD rose sharply." For more information, read our latest forex news.