Image: Glyn Lowe Image: Glyn Lowe

The European Central Bank (ECB) has cut interest rates to 0% as part of a package of stimulus measures.

Designed to boost the struggling eurozone economy, the ECB will also expand its quantitative easing programme from €60 billion per month to €80bn. The expansion will see it purchase corporate bonds as well as government ones.

The ECB also announced a cut to the bank deposit rate from -0.3% to -0.4%, meaning banks have to pay more in order to deposit funds with the ECB.

The €60bn quantitative easing programme was due to end in September this year, but was extended until March 2017 in December.

Last month, the eurozone fell sharply back into deflation following an 8% fall in energy prices.