ECB cuts key rate to help European credit crisis

The European Central Bank has lowered its benchmark interest rate to prevent credit concerns from hurting the global economy.

The ECB cut the key rate from 1.5 to 1.25 percent at its governing council meeting in Frankfurt on Thursday.

It was the council's first gathering since Mario Draghi became the bank's new President.

The council decides economic policy for the 17-nation euro zone.

Before the latest decision, the ECB had increased the key rate twice since April.

The bank wants to make it easier for financial institutions and businesses to borrow funds amid fears that the debt crisis may spread further.

Friday, November 04, 2011 04:56 +0900 (JST)