Sašo Stanovnik says it is still unclear whether the action will work in the long term.

While assessing that the new interest rate cut is a "bold attempt" to raise inflation and bolster economic activity, Stanovnik also does not see it as an innovative measure.

With the move exceeding expectations of investors, stock markets will be buoyed for the time being, the Alta Invest analyst told the STA.

However, given that the measure is just a stepping up of the current programme, the jury is still out whether it will have a long-term effect.

"Generally speaking the main effect of quantitative easing is a drop in the value of the euro, which bolsters the competitiveness of the eurozone," said Stanovnik.

The rise of the dollar against the euro could, however, be halted as early as next week if the US Fed indicates a more cautious approach to its plan for gradually raising interest rates.

For savers, the further cut in interest rates means that "deposits will continue to bring only minimal gains". Loans will meanwhile be cheaper.

The ECB hopes this will help boost household spending and investments by companies, said Stanovnik.

"However, ECB President Mario Draghi has also warned on several occasions that individual countries need to do their part with fiscal policy and structural reforms."

"In the absence of this, we will see only a continuation of the trap of cheap money, which causes balloons to appear in certain sectors."

Stanovnik fears that one of the problems of quantitative easing is that it gives countries less incentive to implement reforms.