Facing anaemic growth and inflation, the ECB is buying 1.74 trillion euros worth of bonds, holding rates deep in negative territory and giving banks free loans, hoping to end the bloc's nearly decade-long economic malaise with an infusion of cheap credit.
Nick Parsons of National Australia Bank believes any further QE could be counter-productive in the financial stability and banking sector profitability of the system and would have a negative impact on business consumer confidence.
Firm US currency sentiment in the overseas market, recovering some ground from the recent slide alongside renewed dollar demand from banks and importers, mainly weighed on the rupee, a forex dealer said.
Keeping rates deep in negative territory and printing money at a record pace, the ECB is hoping to revive inflation and growth in a region weighed down by nearly a decade of economic malaise and crises.
The data will cheer policymakers after an official report on Wednesday showed Indian annual economic growth slowed in the April-June quarter to 7.1 percent, short of expectations for 7.6 percent in a Reuters poll.
Inflation in the 19 countries sharing the euro was 0.2 percent, the same rate as in July, EU's statistics agency Eurostat said on Wednesday in its first estimate.
Saurabh Mukherjea, CEO-institutional equities of Ambit Capital, maintains his Sensex year-end target at 29,500.
Markit's Purchasing Managers' Index for the bloc fell to 52.0 in July from 52.8, just beating a flash estimate of 51.9. An index measuring output held comfortably above the 50 mark that separates growth from contraction at June's 53.9.
Answer: Till as long as the liquidity taps are open.
ECB President Mario Draghi said it was too early to ascertain the full impact of Brexit, however, and underlined that the euro zone's central bank was prepared to take more actions to lift inflation and economic growth if necessary.
Mario Draghi is likely to plead for governments to do more to boost the euro zone's economy in the coming week as the fallout of Britain's vote to leave the EU.
Viktor Shvets of Macquarie expects coordinated central bank action from the Bank of Japan, European Central Bank and Bank of England, with the Federal Reserve taking away tightening to reduce volatility, weaken Yen & avoid a strong US dollar.
A 'Leave' vote may not immediately result in the UK exiting the UK and a narrow 'Remain' may also impact UK politics, finds Credit Suisse.
The ECB's governing council announced that Greek banks will once again be allowed to participate in its regular refinancing operations, from which they had been barred for more than a year while Athens grappled with its creditors over the terms of its bailout.
Presenting an outlook that is consistent with its June 2 policy statement, the ECB said it expects domestic investment to rise further and consumer spending to be sustained at a relatively strong level, with major risks coming from outside the 19-member currency bloc.
The euro's decline kept the dollar index near a two-month peak, leaving it poised for a breakthrough should non-farm payrolls due later in the day bolster expectations for an imminent hike in US rates.
Along with the ECB, an OPEC meeting in Vienna was also at the forefront of investors' minds, with oil prices holding steady as analysts said they did not expect the meeting to result in restrictions on crude oil output.
"There is a reason to look at debt relief because the debt is very high and there will be some problems in the future, I think the debt analysis shows that," Dijsselbloem, who is also Dutch Finance Minister, added.
"The final PMI data confirm the earlier flash estimate that the euro zone economy grew at a steady but unspectacular annual rate of 1.5 percent at the start of the second quarter," said Chris Williamson, chief economist at Markit.
The violet-coloured bill, the largest denomination banknote in the single currency area and physically also the bigger than the five other euro bills, is on the agenda of a meeting of the ECB's governing council, a bank spokesman told AFP.
ECB President Mario Draghi has repeatedly cited subdued growth in emerging market as a drag on the euro area recovery and one of the reasons underpinning its ultra-easy policies.
Quality of global growth remains a concern, while current market conditions are conducive for commodity-based economies, says Viktor Shvets of Macquarie.
Struggling with ultra low inflation, the ECB cut its deposit rate to -0.4 percent in March to force cash parked with the bank into the real economy to generate growth and inflation.
The Fed has held its overnight lending rate for banks at a target range of between 0.25 and 0.50 percent since it lifted the benchmark interest rate for the first time in a decade from near zero last December.
Asked about the latest criticism of ECB policy from German quarters, Lagarde agreed that the ECB had to work independently.