The bank reduced rates from an already record low of 0.5% after eurozone CPI inflation for October came in at 0.7%, far lower than both analysts’ expectations and September’s figure of 1.1%.

Figures in a number of peripheral countries were lower still, with Greece already in deflation and Spain’s inflation rate falling to just 0.1%.

Moving to combat deflation, the ECB made the surprise decision to cut rates. Most market participants had expected the ECB to hold at 0.5% until December.

The cut sent the euro reeling, with the single currency down against the dollar immediately after the news, falling more than a cent to $1.3355.