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/7978431.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
ECB reduces rates to record low ECB reduces rates to record low
(8 minutes later)
The European Central Bank (ECB) has cut interest rates in the eurozone to a record low of 1.25% from 1.5%.The European Central Bank (ECB) has cut interest rates in the eurozone to a record low of 1.25% from 1.5%.
The cut is smaller than was widely expected. Most economists had predicted half percentage point cut to 1%. The cut is smaller than was widely expected. Most economists had predicted half a percentage point cut to 1%.
The ECB had already cut its key rate five times from 4.25% in October 2008 as it tries to boost economic activity amid fears of a long recession. It is the sixth time the ECB has lowered its key rate since October 2008, when it stood at 4.25%, as it tries to boost economic activity.
The unemployment rate in the eurozone rose to 8.5% in February, its highest level in almost three years.The unemployment rate in the eurozone rose to 8.5% in February, its highest level in almost three years.
Analysts who had hoped for a larger cut were disappointed.
"It doesn't make much of a change in the sense that rates are already very low," said Philippe Gijsels, strategist at Fortis in Brussels.
"But it sends the signal that they don't mean business and continue to be behind the curve."
Quantitative easing?
Economists are also waiting to see if the ECB follows other central banks in moving towards quantitative easing.Economists are also waiting to see if the ECB follows other central banks in moving towards quantitative easing.
Both the Bank of England and the US Federal Reserve have introduced quantitative easing - whereby they increase the amount of money in the system - as they try to counter the economic downturn.Both the Bank of England and the US Federal Reserve have introduced quantitative easing - whereby they increase the amount of money in the system - as they try to counter the economic downturn.
It was confirmed in November last year that the eurozone was officially in a recession.It was confirmed in November last year that the eurozone was officially in a recession.
The ECB has said that it expects GDP in the 16-nation bloc to shrink between 2.2% and 3.2% this year.The ECB has said that it expects GDP in the 16-nation bloc to shrink between 2.2% and 3.2% this year.
But the Organisation for Economic Cooperation and Development (OECD) predicted this week that the eurozone economy would contract by 4.1%.But the Organisation for Economic Cooperation and Development (OECD) predicted this week that the eurozone economy would contract by 4.1%.
The OECD also warned that the unemployment rate could rise to almost 12% in 2010.The OECD also warned that the unemployment rate could rise to almost 12% in 2010.