The European Central Bank has delivered a record rate cut, lowering the key interest rate for the 15 countries that use the euro to 2.5% from 3.25%.
The European Central Bank has delivered a record rate cut, lowering the key interest rate for the 15 countries that use the euro to 2.5% from 3.25%.
The cost of borrowing was cut for a third consecutive month as the central bank tries to bolster the eurozone's faltering economies.
The cost of borrowing was cut for a third consecutive month as the central bank tries to bolster the eurozone's faltering economies.
Central banks worldwide are cutting interest rates dramatically to stave off a protracted recession.
Central banks worldwide are cutting interest rates dramatically to stave off a protracted recession.
Earlier, the Bank of England reduced interest rates to 2% from 3%.
Earlier, the Bank of England reduced interest rates to 2% from 3%.
And Sweden's central bank cut its key interest rate by a record 1.75 percentage points to 2%.
And Sweden's central bank cut its key interest rate by a record 1.75 percentage points to 2%.
Battling recession
Battling recession
Official statistics have confirmed that the eurozone is in a recession and recent economic data has been grim.
Official statistics have confirmed that the eurozone is in a recession and recent economic data has been grim.
Some analysts predict that the cost of borrowing in the eurozone could fall further.
Some analysts predict that the cost of borrowing in the eurozone could fall further.
"The recession in the eurozone seems to worsen by the day, while at the same time inflation is no longer a concern," said Carsten Brzeski at ING Financial Markets.
"The recession in the eurozone seems to worsen by the day, while at the same time inflation is no longer a concern," said Carsten Brzeski at ING Financial Markets.
"Apparently, the ECB is willing to do everything necessary to get ahead of the curve."
"Apparently, the ECB is willing to do everything necessary to get ahead of the curve."
ECB president Jean-Claude Trichet will give a news conference at 1330 GMT to explain the decision to cut rates.
ECB president Jean-Claude Trichet will give a news conference at 1330 GMT to explain the decision to cut rates.
Many European countries have unveiled stimulus plans to help boost growth.
Many European countries have unveiled stimulus plans to help boost growth.
Earlier, French President Nicolas Sarkozy detailed a 26bn-euro ($33bn; £23bn) stimulus plan to enable France to fend off financial crisis.
Earlier, French President Nicolas Sarkozy detailed a 26bn-euro ($33bn; £23bn) stimulus plan to enable France to fend off financial crisis.
The member states of the eurozone are France, Italy, Germany, Belgium, the Irish Republic, the Netherlands, Luxembourg, Spain, Portugal, Slovenia, Malta, Greece, Austria, Finland and Cyprus.
The member states of the eurozone are France, Italy, Germany, Belgium, the Irish Republic, the Netherlands, Luxembourg, Spain, Portugal, Slovenia, Malta, Greece, Austria, Finland and Cyprus.
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