The European Central Bank cut its main interest rate on Thursday - TopicsExpress

The European Central Bank cut its main interest rate on Thursday to a new record low of 0.25 percent, responding to a surprise drop in inflation by easing policy to support the euro zone’s weak economic recovery. The quarter-point cut was largely unexpected and highlights the ECB’s concern about the slowdown in euro zone inflation to 0.7 percent in October – a rate far below its target of just under 2 percent. The euro fell sharply after the decision to $1.3397 from $1.35 prior to the announcement.

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