This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7712684.stm

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Eurozone rates lowered to 3.25% Eurozone rates lowered to 3.25%
(20 minutes later)
The European Central Bank has lowered its eurozone interest rates to 3.25% in an attempt to prevent a recession.The European Central Bank has lowered its eurozone interest rates to 3.25% in an attempt to prevent a recession.
The bank has reduced rates by half a percentage point from 3.75% amid increasing signs of slowing growth.The bank has reduced rates by half a percentage point from 3.75% amid increasing signs of slowing growth.
The ECB joined other central banks in cutting rates last month but some have argued that it has not acted swiftly enough to stem the growing crisis.The ECB joined other central banks in cutting rates last month but some have argued that it has not acted swiftly enough to stem the growing crisis.
Earlier the Bank of England unexpectedly cut UK rates from 4.5% to 3%, the biggest cut since 1981.Earlier the Bank of England unexpectedly cut UK rates from 4.5% to 3%, the biggest cut since 1981.
Some analysts had expected the ECB to make a sharper cut after the UK's dramatic reduction.
The last time ECB rates stood at 3.25% was in October 2006.The last time ECB rates stood at 3.25% was in October 2006.
Some analysts had expected the ECB to make a sharper cut after the UK's dramatic reduction, some economists say the latest move by the bank paves the way for more reductions.
"A further 50 basis point rate cut at the next meeting in December is a distinct possibility," agreed Jennifer McKeown at Capital Economics.
Also on Thursday, Switzerland cut its interest rates by a half percentage point, the second cut in a month.
The Swiss National Bank said it was cutting its the target range to 1.5-2.5%, and intended to hold the rate in the middle of this range.
Following the cut in Swiss rates, Henrik Gullberg, an analyst at Deutsche Bank, said: "I am surprised, but it is clear central banks generally are determined to cut rates sharply now when the inflation threat is receding".
SlowdownSlowdown
In July this year, the ECB had raised rates to try to put a lid on growing inflationary pressures, but since then these pressures have eased considerably largely thanks to a sharp fall in oil prices.In July this year, the ECB had raised rates to try to put a lid on growing inflationary pressures, but since then these pressures have eased considerably largely thanks to a sharp fall in oil prices.
The ECB cut rates by half a percentage point in October this year, as central banks worldwide, including the US Federal Reserve and the Bank of England, did the same in light of the worsening financial crisis.The ECB cut rates by half a percentage point in October this year, as central banks worldwide, including the US Federal Reserve and the Bank of England, did the same in light of the worsening financial crisis.
A series of economic data released this week has shown how economies across the eurozone are slowing.A series of economic data released this week has shown how economies across the eurozone are slowing.
On Wednesday, figures showed that retail spending across the eurozone dropped in September, as consumers tightened their belts.On Wednesday, figures showed that retail spending across the eurozone dropped in September, as consumers tightened their belts.
Retail sales dropped 0.2% from August, and by 1.6% compared with September 2007.Retail sales dropped 0.2% from August, and by 1.6% compared with September 2007.
And on Monday, the European Commission predicted that the 15-nation area would hardly grow in 2009, expanding 0.1%.And on Monday, the European Commission predicted that the 15-nation area would hardly grow in 2009, expanding 0.1%.
European indexes were lower in early afternoon trade following both the UK and ECB rate cuts.European indexes were lower in early afternoon trade following both the UK and ECB rate cuts.
The UK's FTSE 100 index was 1.9% lower, France's Cac 40 dropped 1.8% and Germany's Dax was down 2.1%.The UK's FTSE 100 index was 1.9% lower, France's Cac 40 dropped 1.8% and Germany's Dax was down 2.1%.