By Gabi Thesing Dec. 4 (Bloomberg) -- The European Central Bank cut interestrates by three quarters of a percentage point, the biggestreduction in its 10-year history, as the economic slump deepenedand inflation waned.
ECB policy makers meeting in Brussels lowered the benchmark lending rate to 2.5 percent from 3.25 percent. Only 17 of 56economists in a Bloomberg News survey correctly forecast themove, with 35 predicting a cut of 50 basis points and 4 callingfor a full percentage-point reduction. The Bank of England andSweden’s Riksbank lowered rates more than the ECB today. Laurent Bilke , an economist atNomura International in London who used to work as a forecasterat the ECB. “The economy is in deep recession now, so ratesshould come down as quickly as possible.” Trichet holds a press conference at 2:30 p.m. in Brussels toexplain the decision and unveil the ECB’s revised growth andinflation projections. The bank’s Governing Council meets twice ayear away from its Frankfurt headquarters.
Full Story: ECB Delivers Biggest Rate Cut Ever as Economy Slumps (Update1) - Bloomberg
ECB policy makers meeting in Brussels lowered the benchmark lending rate to 2.5 percent from 3.25 percent. Only 17 of 56economists in a Bloomberg News survey correctly forecast themove, with 35 predicting a cut of 50 basis points and 4 callingfor a full percentage-point reduction. The Bank of England andSweden’s Riksbank lowered rates more than the ECB today. Laurent Bilke , an economist atNomura International in London who used to work as a forecasterat the ECB. “The economy is in deep recession now, so ratesshould come down as quickly as possible.” Trichet holds a press conference at 2:30 p.m. in Brussels toexplain the decision and unveil the ECB’s revised growth andinflation projections. The bank’s Governing Council meets twice ayear away from its Frankfurt headquarters.
Full Story: ECB Delivers Biggest Rate Cut Ever as Economy Slumps (Update1) - Bloomberg
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