Mounting fears over the sluggish eurozone economy have prompted the European Central Bank (ECB) to cut its key interest rate by a half-point, to 2.75%. There have been strong hints in the weeks since the last meeting from governing council members that the Bank would act today. Speaking on Tuesday Wim Duisenberg said "downside risks to economic growth have not disappeared".
The move follows more than a year of ECB inaction on rates, despite cuts enacted by other major central banks.
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