ECB cuts, Trichet signals more could come

The European Central Bank (ECB) has chopped a half point off its key rate and indicated rates could reach a fresh low in the months to come. The news followed confirmation that eurozone inflation sank below the central bank's target in December.

The cut leaves the central bank's main refinancing rate at 2%. The rate is equal to the all-time low set between 2003 and 2005. Support for the decision was unanimous.

Markets were expecting the cut, with the London Interbank Offered Rate for overnigh