January 16, 2009

Interest rates down in the Eurozone

The European Central Bank (ECB) has once again reduced interest rates by another half of a per cent to two per cent, this is the fourth time since September that interest rate have been reduced when they were well established at four and quarter per cent.

However this new rate is still higher than those in the UK and the US, but figures also mean that the Eurozone is officially in recession and this is likely to affect countries like Slovakia who only this month became the sixteenth country to sign up to the euro.

It would appear that this is not going to be the final cut as the ECB chairman, Jean-Claude Trichet has suggested that there is a likelihood that there will be another rate cut in March, where the Eurozone will finally be in line with the UK and US.

Source [BBC]