ECB cuts interest rates
The governing council of the European Central Bank (ECB) cut interest rates by 10 basis points to a record low of 0.05%, with effect from September 10.
The overnight deposit rate will also drop 10 basis points drop to -0.2%, with effect from the same date.
"The Governing Council sees the risks surrounding the economic outlook for the euro area on the downside," ECB President Mario Draghi told a press conference.
"In particular, the loss in economic momentum may dampen private investment, and heightened geopolitical risks could have a further negative impact on business and consumer confidence."
Inflation forcasts for the Eurozone this year stand at 0.3%, well below the ECB's target of close to 2%.
Draghi said if inflation remained low, the ECB would use "unconventional instruments".
The ECB's economic growth forecasts have been slightly slower this year, at 0.9%, rising to 1.6% in 2015.
The overnight deposit rate will also drop 10 basis points drop to -0.2%, with effect from the same date.
"The Governing Council sees the risks surrounding the economic outlook for the euro area on the downside," ECB President Mario Draghi told a press conference.
"In particular, the loss in economic momentum may dampen private investment, and heightened geopolitical risks could have a further negative impact on business and consumer confidence."
Inflation forcasts for the Eurozone this year stand at 0.3%, well below the ECB's target of close to 2%.
Draghi said if inflation remained low, the ECB would use "unconventional instruments".
The ECB's economic growth forecasts have been slightly slower this year, at 0.9%, rising to 1.6% in 2015.
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