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Thu 11 Nov 2008ECB cuts rates to 3.25%, says inflation to ease
The European Central Bank cut interest rates by 50 basis points today as the euro zone economy faces its first recession, and forecast inflation should drop to its target next year.
President Jean-Claude Trichet said that turmoil on financial markets was likely to hit the global and euro zone economies, in comments suggesting that the ECB plans to cut interest rates further at some stage.
“I don't exclude that we could cut rates again," he told a news conference. Today's cut took the ECB's benchmark rate to a two-year low of 3.25 per cent, reflecting the euro zone's sharply deteriorating economic outlook and easing inflation pressures.
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