The European Central Bank (ECB) was expected to deliver a rate cut on Thursday, and that is exactly what the market got. The overnight refi rate was cut to 0.50% from 0.75%. We also saw that the marginal lending rate was dropped to 1.00% from 1.50%, while the deposit rate was already at 0.0%.

Today’s ECB meeting was held in Bratislava. What investors need to know is that this represents a record low on that refi rate. The European Central Bank has been faced with a new wave of declining economic reports.

More recent issues include Cyprus, and now somehow even Slovenia is in the news in need of a bailout. Mario Draghi pledged to do whatever it takes last year, and this is one more step on top of the unconventional easing measures taken so far.

Equity futures continue to remain firm after the news. S&P 500 futures are up five points and DJIA futures are up 46 points.

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