WRAPUP 1-ECB trims rates, edges into QE with bank bonds buy
* ECB cuts rates to 1.0 pct, says appropriate for now
* To buy covered bank bonds, likely 60 bln euros' worth
* Doubles maximum length of liquidity operations to 1 year
* Trichet says move is not quantitative easing
By Sakari Suoninen and Marc Jones
FRANKFURT, May 7 (Reuters) - The European Central Bank said it will buy up bonds for the first time and trimmed its main interest rate to a new record low on Thursday in a bid to stem the euro zone's economic decline and shore up shaky markets.
The decision is the first step on a path of quantitative easing, although the ECB stopped short of the massive asset purchase programmes followed by counterparts including the U.S. Federal Reserve and the Bank of England.
The ECB plans to spend about 60 billion euros ($80 billion) buying covered bank bonds -- securities issued by banks and backed by mortgages or other loans -- but did not rule out expanding into other types of assets down the track. Continued...
One Year Later
Mumbai held tearful memorials and police staged a show of strength as it marked the first anniversary of militant raids that killed 166 people and ratcheted up tensions with Pakistan. Slideshow | Full Coverage
Liberhan Commission Report
The government published a long awaited report, recently leaked, accusing BJP leaders of a role in the 1992 destruction of the Babri mosque in Ayodhya. Full Article
