ECB cuts repo rate by 75bps

While the main policy aim of the ECB is to control inflation, president Jean-Claude Trichet said that inflationary pressures had eased significantly in recent months. "In the view of the governing council, the economic outlook remains surrounded by an exceptionally high degree of uncertainty," he added. "Risks to economic growth lie on the downside. They relate mainly to the potential for a more significant impact on the real economy of the turmoil in financial markets, as well as concerns about protectionist pressures and possible disorderly developments owing to global imbalances." ...