ECB cuts interest rate by 75 basis points to 2.5%

04 December 2008 12:48  [Source: ICIS news]

LONDON (ICIS news)--The European Central Bank on Thursday lowered eurozone interest rates by 75 basis points to 2.5%, the largest cut in the bank’s ten-year history.

The cut follows reductions in the UK and Sweden, as the ECB attempts to stop the 15-nation euro region spiralling deeper into recession.

The region was declared in recession in November following a second quarterly contraction in GDP, with most analysts ruling out a revival in growth until the third quarter of next year.

The Bank of England earlier cut UK interest rates by a whole percentage point to 2%, while Sweden’s Riksbank lowered its key rate by 1.75 percentage points to 2%.

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By: Mark Watts
+44 20 8652 3214

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