ECB in surprise interest rate cut
Staff reporter · 3 Nov 2011, 14:20
Published: 03 Nov 2011 14:20 GMT+01:00
The decision to lower borrowing costs in the 17-member eurozone came as a surprise on the first day of the G20 summit in Cannes, France. The move comes just after Mario Draghi officially took over the helm of the ECB on Tuesday.
The financial markets had expected the ECB to leave rates unchanged, but Europe's central bankers clearly felt the Greek government's decision this week to call a referendum on an EU bailout package for the country had pushed the eurozone to the brink of economic disaster.