The ECB lowered growth forecasts to 1.4% this year, 1.7% next year and 1.8% in 2017 due to weakness in emerging markets, and left interest rates unchanged.
ECB president Mario Draghi emphasised that the central bank’s “willingness to act, its readiness to act, and its capacity to act” on further QE.
The Euro Stoxx jumped 2.2%.
ANZ Research speculated that the ECB’s move may delay the US Federal Reserve’s plans to lift interest rates.
“Upon receiving news of the ECB’s renewed dovish resolve and its decision to lift issue limits, Fed chair Janet Yellen was probably thinking to herself ‘why’d you have to do that this month, Mario?’,” it said.
“In all likelihood, it was to be expected, but with everyone else easing or delaying hikes, at the margin it just makes lift-off that little bit harder for the Fed to deliver.”
Despite the talk, Comex gold dropped 0.8% to $US1124.50 an ounce.
Copper was the big mover in London, jumping 2.5% to $5264 per tonne, its highest point in close to four weeks.
The iron ore spot price ended its winning streak, with 62% fines down 20c to $56.50/t and 58% fines down $2.61 to $47.57/t.
