HOT: ECB Cuts Rates to 1.25% in Surprise Move

With only two days into his new role as president of the European Central Bank, former Goldmanite Mario Draghi has signaled that the tight money policy maintained by Jean-Claude Trichet, his predecessor at the ECB, is over. The ECH has announced today that it has cut its main interest rate by 25 basis points to 1.25. The ECB also reduced the interest rate on its deposit facility to 0.5 percent and the rate on the marginal lending facility to 2.0 percent. ECB President Mario Draghi will explain the Governing Council's decision at a news conference later today.