Eurozone interest rates cut to 1.25%
The European Central Bank has cut official interest rates further as it steps up its efforts to combat Europe’s recession, but it has stopped short of entering zero interest rate territory.
The ECB said its main policy interest rate would fall from 1.5 per cent to 1.25 per cent, the lowest ever. The cut was smaller than financial markets expected. But it sends a signal that the central bank remains wary of following the example of the US Federal Reserve, which has cut official interest rates to virtually zero
