ECB cuts eurozone interest rates

ECB cuts eurozone interest rates
Photo: DPA
The European Central Bank (ECB) on Thursday cut its main interest rate by 50 basis points to 3.25 percent in an attempt to buttress the weakening eurozone economy.

The move to lower borrowing costs for Germany and the other eurozone countries came as Europe’s monetary authorities remained concerned about the impact of the global financial crisis.

ECB President Jean-Claude Trichet had recently indicated the Frankfurt-based central bank would cut interest rates to help European economies find their footing.

“The worsening and expansion of the crisis on the financial markets will very likely depress demand worldwide and in the eurozone for quite some time,” Trichet said.

The ECB last lowered rates on October 8, as part of a worldwide coordinated cut with the US Federal Reserve and other leading central banks.