Historic rate cuts across Europe

ECB president Jean-Claude Trichet slashed his forecasts for Eurozone growth, saying "both the global and European area will be weak in 2009". The governing council now believes GDP in the Eurozone will contract by 2.2% to 3.2% and forecast growth of just 0.7% and -0.7% for 2010. Trichet says the inflation rate has decreased significantly and he expects it to remain below 2% in 2009-2010 because of depressed commodity prices and ailing domestic economies. Earlier in the day, the Bank of England's Monetary Policy Committee also cut its interest rates by 0.5%. Rates fell from 1% to a his...