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"Global and euro-area demand are likely to be dampened for a protracted period of time," said Mr Trichet. (Photo: The Council of the European Union)

ECB announces record rate cut

The European Central Bank on Thursday (4 December) cut the cost of borrowing in the 15-strong euro area by a record 75 basis points to 2.50 percent, with the institution's president, Jean-Claude Trichet, saying the eurozone's economy is expected to shrink next year, following a global trend.

The cut is "obviously an important one, but it was what we had to do," Mr Trichet said at a press conference in Brussels.

"We considered that it was again appropriate taking into account a fur...

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"Global and euro-area demand are likely to be dampened for a protracted period of time," said Mr Trichet. (Photo: The Council of the European Union)

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