The European Central Bank (ECB) has reduced its key interest rate from 1% to 0.75%, a record low for the eurozone.
The move comes as the eurozone economy continues to be weak.
The ECB also cut its deposit rate, from 0.25% to zero.
The cuts follow action from other major central banks on Thursday with the Bank of England adding another £50bn in stimulus money and the Bank of China cutting its key interest rates.
A cut in the ECB's deposit rate is designed to stimulate lending between banks as funds placed with commercial banks overnight are currently receiving 0.3% in interest.
Surveys released earlier this week indicated that the eurozone's service sector had continued to shrink in June and that business confidence had fallen.
Source & Image : BBC
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