ECB Cuts interest rates by 0.25%

The European Central Bank (ECB) cut interest rates in the Eurozone to a record low of 1% in May.

The ECB also agreed to a plan to buy up to €60bn worth of debt in a bid to pump money into the Eurozone economy. ECB president Jean-Claude Trichet siad that details of the plan would be revealed following the bank’snext meeting on 4 June.

The ECB’s announcement followed the Bank of England’s (BoE) decision to maintain interest rates at 0.5% and to inject a further �50bn into the UK economy by buying government and corporate debt, bringing the BoE’s total expenditure to �125bn.