Thursday, December 8, 2011

European Central Bank Cuts Rate

The European Central Bank has cut its main interest rate by 25 basis points to 1.0 percent.

The rate cut was voted on at a regularly scheduled meeting of the ECB policy committee.

The ECB also reduced the interest rate on its deposit facility to 0.25 percent and the rate on the marginal lending facility to 1.75 percent, bringing all rates to match record lows reached in 2009.

ECB President Mario Draghi will discuss the Governing Council's decision at a 8:30 ET news conference.

The cut was the second in as many months, and means that the ECB has reduced borrowing costs in both meetings since Draghi has taken over as president of the central bank from Jean-Claude Trichet.

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