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ECB 'to cut rates'

Published: 6 November 2008 in New Mortgages

The European Central Bank (ECB) is likely to slash interest rates by 50 basis points or more today (November 6th), it has been noted.

According to Reuters, the Eurozone is now facing its first ever recession but such action could potentially bolster the economy.

Analysts believe this is the move that will be made at the governing council's meeting and also expect a similar decision to be taken next month.

Holger Schmieding, co-head of Europe economics at Bank of America, said: "75 [basis points] is possible. But it is much more likely that it will be 50."

According to the European Commission, the Eurozone is already in the midst of a technical recession.

Meanwhile, the Bank of England's monetary policy committee will announce its decision on the base rate of interest later today.

It is expected that rates will be cut by half a percentage point to four per cent.

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