European banks cut interest rates
05-12-2008
European central banks have announced a series of interest rate cuts to tame a deepening recession. The European Central Bank cut its key interest rate by a record 0.75 percentage points to 2.50 percent as ECB head Jean-Claude Trichet warned that the eurozone economy could contract by as much as 1.0 percent next year. The Bank of England meanwhile slashed its key interest rate by a full percentage point to 2.0 percent, amid mounting evidence Britain faces a deep recession. The move followed a record 1.50 percent reduction in November. Sweden earlier reduced its benchmark rate by 1.75 percentage points to 2.0 percent in the sharpest cut since 1992 and Denmark cut its rates by 0.75 points to 4.25 percent in line with the ECB move.
