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ECB meeting room - the European bank held an teleconference on the rate cut (Photo: European Central Bank)

Europe and US synchronise rate cuts

The European Central Bank (ECB) has moved to cut interest rates in the 15 country-strong eurozone in a co-ordinated move with five other major central banks, in a bid to slow Europe's economic downturn.

The Frankfurt-based ECB cut its benchmark rate from 4.25 percent to 3.75 percent on Wednesday (8 October). It is the first rate cut since June 2003 and comes sooner than analysts expected.

On the same day, the US Federal Reserve cut rates from 2 percent to 1.5 percent. The Bank of ...

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ECB meeting room - the European bank held an teleconference on the rate cut (Photo: European Central Bank)

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