ECB cuts rates to 2%

Monetary policymakers for the single currency area have joined central banks around the world in making deep cuts in recent months as the global economy has faltered. The 0.5% cut brings Eurozone interest rates to their lowest level since late 2005, and was widely expected by analysts. Rates are expected to fall further during 2009, though the reluctance of banks to lend money is cause policymakers to consider other ways to stimulate the economy. Last week, the Bank of England cut sterling rates to a record low of 1.5%, while the US Fed cut rates to 0% at the end of 2008. The 15-nat...