ECB unveils new emergency measures after rate cut

The European Central Bank has cut interest rates by 25 basis points to 1% and announced new measures to help ease funding pressures.

This is the second time in two months the ECB has cut rates. It will also offer two new long-term refinancing operations and has eased collateral requirements as it attempts to shore up the continent's banking sector. The ECB said it will accept single-A asset-backed securities as collateral and will also cut banks' reserve ratios from 2% to 1%. The first of the new refinancing operations will begin on 21 December and will replace an earlier operation announced in October. The two new operations will have a maturity of 36 months. Last month new ECB president Mario Draghi immedia...