EUROPEAN CENTRAL BANK CUTS RATES TO ALL-TIME LOW

The European Central Bank cut its key interest rate by a quarter point to an all-time low of 1.25% on 2nd April, 2009. According to an ECB spokesman, the bank had also reduced its two other reference rates – the deposit rate and the marginal lending rate – to 0.25% and 2.25% respectively. The deposit rate is the amount of interest the ECB pays to commercial banks that leave money with it overnight