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/7925641.stm
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Euro rates hit record low of 1.5% | Euro rates hit record low of 1.5% |
| (10 minutes later) | |
| The European Central Bank (ECB) has cut its key interest rate to 1.5% from 2.0%, the lowest since it started setting euro rates in January 1999. | The European Central Bank (ECB) has cut its key interest rate to 1.5% from 2.0%, the lowest since it started setting euro rates in January 1999. |
| It followed a cut in UK rates by the Bank of England. US and Japanese rates are already effectively zero. | It followed a cut in UK rates by the Bank of England. US and Japanese rates are already effectively zero. |
| A cut had been expected at the March meeting since ECB president Jean-Claude Trichet had described it as a key "rendezvous" for ECB rate-setters. | A cut had been expected at the March meeting since ECB president Jean-Claude Trichet had described it as a key "rendezvous" for ECB rate-setters. |
| Attention now turns to what other ways the ECB may try to boost the economy. | Attention now turns to what other ways the ECB may try to boost the economy. |
| There is much interest in whether Mr Trichet will use his afternoon news conference to announce the introduction of any other stimulus measures. | |
| "The question is what else they can do?" said Stephanie Deo, an economist at UBS. | "The question is what else they can do?" said Stephanie Deo, an economist at UBS. |
| "They could buy paper on the market, they could intervene more on the money markets and there is talk about clearing houses for certain assets." | "They could buy paper on the market, they could intervene more on the money markets and there is talk about clearing houses for certain assets." |
| Slowing growth | Slowing growth |
| Thursday's decision was the ECB's fifth rate cut since October 2008, which has brought eurozone rates down from 4.25%. | Thursday's decision was the ECB's fifth rate cut since October 2008, which has brought eurozone rates down from 4.25%. |
| The challenge facing the ECB was confirmed by revised economic growth figures for the 16 nation bloc issued earlier on Thursday. | The challenge facing the ECB was confirmed by revised economic growth figures for the 16 nation bloc issued earlier on Thursday. |
| GDP for the last three months of 2008 was down 1.3% from the same quarter of the previous year, worse than the initial estimate of 1.2%. | GDP for the last three months of 2008 was down 1.3% from the same quarter of the previous year, worse than the initial estimate of 1.2%. |
| The figure for the previous quarter was left unchanged at a 1.5% fall. | The figure for the previous quarter was left unchanged at a 1.5% fall. |
| The ECB is expected to revise its growth forecast for this year at its news conference. | The ECB is expected to revise its growth forecast for this year at its news conference. |
| Its last prediction, made in December, was that growth would be between no change and a fall of 1% in 2009. | Its last prediction, made in December, was that growth would be between no change and a fall of 1% in 2009. |
| For 2010 it was predicting growth of between 0.5% and 1.5%. | For 2010 it was predicting growth of between 0.5% and 1.5%. |