CRI听力:ECB Cuts Rates, Unveils Stimulus Plan

The European Central Bank has cut interest rates and announced a new stimulus program in an attempt to jumpstart a sluggish economic recovery.

The central bank announced a cut in its benchmark interest rate to a record low of 0.05 percent. This easing goes into effect on top of a 0.1 percent rate cut enacted earlier in the year.

ECB President Mario Draghi says the bank is also going to begin its own asset-purchase program in October.

"In addition, the Governing Council decided to start purchasing non-financial private sector assets. The Euro system will purchase a broad portfolio of simple and transparent asset-backed securities."

Asset-backed securities are normally loans to companies and mortgages.

Buying them should stimulate the market through encouraging more bank lending.

It is hoped this move will add liquidity to the financial system and revive lending.

The measure falls somewhat short of certain expectations the ECB might mirror the US Fed and begin purchasing government bonds.

For more on this, CRI's Zhao Yang spoke earlier with Terrill Frantz, Professor from the Peking University HSBC Business School.