Mubasher: The European Central Bank (ECB) hinted more easing measures on Thursday, sending the euro to its two-year trough against the US dollar.

Deciding to maintain its interest rates at their current “or lower levels” at least through the first half of next year, the ECB made a change to the wording from the prior statements, indicating a reduction on the horizon.

“A significant degree of monetary stimulus continues to be necessary to ensure that financial conditions remain very favourable and support the euro area expansion,” ECB President Mario Draghi said in a press conference following the bank’s decision.

In addition, the bank hinted measures to boost the growth of the Eurozone economy, stating that alternatives were being weighed, including “the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases.”

This suggested that the rate at which banks are charged to park their surplus cash at the ECB could be reduced.

Moreover, the central bank was eying a re-introduction of a quantitative easing (QE) programme in the next months, under which government bonds from the Eurozone nations in order further boost lending and stoke inflation.

After the ECB’s shift in guidance, the euro declined against the dollar to $1.1103.

By 2:03 pm GMT, the EUR/USD pair rose by 0.39% to $1.1183.