European Central Bank unexpectedly cuts benchmark rate

The European Central Bank cut interest rates to new record lows on Thursday, unexpectedly lowering borrowing costs to try to lift inflation from rock-bottom levels and support the stagnating euro zone economy.

The main refinancing rate was cut to 0.05 percent from 0.15 percent, according to Reuters.

On Thursday, the ECB also said it had lowered the rate on bank overnight deposits to -0.2 percent, which means banks pay to park funds at the central bank, and cut its marginal lending facility - or emergency borrowing rate - to 0.30 percent.

Read more from Reuters.