ECB cuts interest rates as expected

European Central Bank (ECB) cut interest rates to a record low on Thursday to breathe life into a deteriorating eurozone economy and back up measures agreed by government leaders last week to tackle the bloc’s debt crisis.

The quarter-point cut in the ECB’s main refinancing rate, to 0,75%, was in line with market expectations and followed a dire batch of economic data that show even eurozone powerhouse Germany is entering a modest downturn.

Of 71 economists polled by Reuters, 48 had expected the bank to cut, most of them by 25 basis points, though some others forecast a larger decrease.

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