Following the announcement of the BOE, the European Central Bank followed suit and reduced the base rate by 50 basis points (1.50%). As Inflation in the euro zone shows no sign of being an inmediate threat, Jean-Claude Trichet told reporters that economic growth would be less than in previous forecasts (up to a -3.2% contraction up from a previous -1%) and recovery could begin as early as 2010.
This rate cut leaves the base rate at its lowest point since the creation of the European Central Bank in 1999.
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