The Buzz | European Central Bank deploys new stimulus to help economy

The European Central Bank delivered a new blast of monetary stimulus yesterday to help the shaky economy in the face of uncertainties like the U.S.-China trade conflict and Brexit.

The decision comes as central banks around the world, including the U.S. Federal Reserve, are lowering rates to support slowing trade and growth. Those moves come despite questions over how much more good central banks can do without help from other policies such as government spending and pro-business reforms.

In a wide-ranging package of measures that will ensure outgoing President Mario Draghi leaves his mark on ECB policies long after he departs next month, the bank cut one key interest rate further below zero. It trimmed the rate on deposits it takes from banks to minus 0.5% from minus 0.4%, a penalty that pushes banks to lend their excess cash.

The ECB also said it would restart its bond-buying stimulus program, which pumps newly created money into the financial system to lower borrowing costs and help the economy. It will buy 20 billion euros ($22 billion) a month in government and corporate bonds for as long as needed.