ECB cuts deposit rate as expected, to announce more measures

[December 03, 2015]  FRANKFURT (Reuters) - The European Central Bank cut its deposit rate on Thursday in its latest effort to revive lending and inflation in the euro zone and said it would announce further policy action later in the day.

As widely expected by analysts, the ECB cut its deposit facility to -0.30 percent from -0.20 percent, a move designed to stimulate lending by increasing the penalty on banks that leave their excess cash with the ECB.

The ECB's main refinancing rate, which determines the cost of borrowing for banks at the ECB's weekly auction, was left unchanged at 0.05, as was the marginal lending facility - or emergency overnight borrowing rate- at 0.30 percent.

Markets now turn their attention to ECB President Mario Draghi's 1230 GMT news conference and whether the bank will make any adjustments to its 60 billion euro per month asset purchase program.

(Reporting by Balazs Koranyi and Francesco Canepa Editing by Jeremy Gaunt.)

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