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Thu 03 Mar 2009ECB signals further cuts as rates fall to record low

The European Central Bank cut interest rates to an all-time low today and signalled further easing was possible as its staff forecast the euro zone economy could shrink by more than three per cent this year.

The ECB kept up its recent record pace of interest rate reductions, cutting by another 50 basis points to take its benchmark rate to 1.5 per cent, the lowest in its 10-year history.

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