Corporate credit skips with delight after ECB rate cut surprise

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Corporate credit skips with delight after ECB rate cut surprise

Draghi in darkness
Mario Draghi, president of the European Central Bank (ECB) attends the ECB press conference in Frankfurt/Main, Germany, 04 September 2014. The ECB reduced the base rate to a historic low of 0,05 percent. Photo: Frank Rumpenhorst/dpa | Frank Rumpenhorst/DPA/Press Association Images

Credit markets reacted with delight on Thursday afternoon to the European Central Bank’s 10bp interest rate cut. Although at least three major banks’ economists had predicted it, most of the rest had not, and many market participants were taken by surprise.

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