Mario Draghi: ECB prepared to cut interest rates and expand QE

Bank's president stuns markets with announcement, saying slowdown in emerging markets has weakened eurozone

Mario Draghi, the president of the European Central Bank, has stunned markets by signalling that he is prepared to cut interest rates and step up quantitative easing to stave off the risk of a renewed economic slump in the eurozone.

The value of the single currency dropped sharply on foreign exchanges on Thursday as Draghi announced that the ECB's governing council had discussed expanding its a1.1tn (795bn) bond-buying programme and cutting the rate on reserves held at the central bank.

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