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| Version 4 | Version 5 |
|---|---|
| ECB cuts eurozone rates to 2.5% | ECB cuts eurozone rates to 2.5% |
| (about 2 hours later) | |
| 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%. |
| Sweden's central bank cut its key interest rate by a record 1.75 percentage points to 2% on Thursday and monetary policymakers in Denmark and New Zealand also reduced the cost of borrowing. | Sweden's central bank cut its key interest rate by a record 1.75 percentage points to 2% on Thursday and monetary policymakers in Denmark and New Zealand also reduced the cost of borrowing. |
| 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. |
| The level of uncertainty remains exceptionally high Jean-Claude Trichet, ECB president class="" href="/1/hi/business/7765781.stm">Is the ECB dragging its heels? | |
| The cut was the most aggressive in the ECB's 10-year history. | The cut was the most aggressive in the ECB's 10-year history. |
| "The ECB has been forced to abandon its gradual monetary policy approach as a wide range of economic indicators in the eurozone are in freefall," said Jörg Radeke, an economist at the Centre for Economic and Business Research. | "The ECB has been forced to abandon its gradual monetary policy approach as a wide range of economic indicators in the eurozone are in freefall," said Jörg Radeke, an economist at the Centre for Economic and Business Research. |
| ECB president Jean-Claude Trichet said the global economy was likely to remain weak next year, as was demand in eurozone countries. | ECB president Jean-Claude Trichet said the global economy was likely to remain weak next year, as was demand in eurozone countries. |
| He said that turmoil on financial markets could further weaken the eurozone economy. | He said that turmoil on financial markets could further weaken the eurozone economy. |
| "The level of uncertainty remains exceptionally high," he said. | "The level of uncertainty remains exceptionally high," he said. |
| Mr Trichet also said that inflationary pressures were diminishing. | Mr Trichet also said that inflationary pressures were diminishing. |
| Further fall? | Further fall? |
| 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." |
| 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. |
| Are you affected by the issues raised in this story? What is your reaction to the European Central Bank's move? Is this a way to get the economy in the Eurozone out of the crisis? Send us your views using the form below: | Are you affected by the issues raised in this story? What is your reaction to the European Central Bank's move? Is this a way to get the economy in the Eurozone out of the crisis? Send us your views using the form below: |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |