Draghi tries a bit of shock and awe

ECB chief Mario Draghi has deployed further stimulus measures

The European Central Bank (ECB) has cut all three of its interest rates. One of them, the deposit rate, has been pushed further into negative territory.

ECB President Mario Draghi has also announced that quantitative easing will be expanded by €20bn a month and will now include debt issued by "non-banks" - ie other businesses.

What does that tell us?

That the ECB is very worried about sickly growth and deflation across the Eurozone.

And that after disappointing the markets last time, it wants to produce a bit of "shock and awe" to spark a change in behaviour and encourage lending by banks and investment by businesses.

Share prices are up, and the euro is down.

Mr Draghi will be now be watching to see if the ECB's actions have any effect on economic growth.

If they don't, the central bank has a major problem. As do the major European economies, held in a deflationary spiral by slowing growth, low global demand and crumbling commodity prices.

Once you have fired the bazooka, you had better hope it has the desired effect.