Frankfurt am Main — The European Central Bank (ECB) signalled on Thursday that it could unleash a new stimulus package and slash rates further, in a bid to shore up stubbornly low inflation and kickstart sluggish growth in the eurozone.

The change in monetary policy direction came as clouds darken outside the bloc, with growing fears over US-led protectionism, weakness in emerging markets and geopolitical risks, dampening the economic mood...

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