The economic difference between Europe and the US was moved to center stage Thursday morning as the central bank cut interest rates further below zero to spur growth.

The European Central Bank President Mario Draghi announce it cut  the rate to a record low -0.5% from -0.4% and will restart bond purchases of 20 billion euros a month from November, it said in a statement.

The central banker made the announcement as Germany — the powerhouse behind the European economy — battles with stagflation.

Draghi cited slowing growth and inflation are dragging down the EU while trade has been effected by global slowdown.

US stocks and precious metals jumped on the news.