Originally published by the Voice of America (www.voanews.com).
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December 4, 2008

European Banks Cut Interest Rates
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http://enews.voanews.com/t?ctl=20D2185:A6F02AD83191E160759E44F9672FD0D130EB2FA2E66CBB22&
 
Officials of European Central Bank make biggest rate cut in the bank's
history; 
key rate now at 2.5 percent 
Europe's two leading central banks are cutting key interest rates in an
effort to ease the impact of the global financial crisis. President of
the European Central Bank, ECB, Jean-Claude Trichet Officials of the
European Central Bank made the biggest rate cut in the bank's history
Thursday, a three-quarters of one percent cut, putting the key rate at
2.5 percent. Meanwhile, the Bank of England slashed its interest rate by
a full percentage point, putting the key rate at two percent - the
lowest level since 1959.Lower interest rates make it cheaper for people
to borrow money to pay for homes, businesses and other investments that
fuel the economy. French President Nicolas Sarkozy has introduced a new
plan to help stimulate his country's economy and save jobs. The $30
billion plan includes targeted investments in the auto industry and
infrastructure projects. The U.S. government is considering steps to
influence home loan rates, to help stabilize the U.S. housing market.
Under the plan, the Treasury Department would buy investments linked to
new home loans, under the condition that those loans are set at a low
interest rate of 4.5 percent. The goal is to make it easier for
consumers to borrow the money needed to buy homes. Some information for
this report was provided by AFP, AP and Reuters.


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