ECB cuts main interest rate by 25 bps to 0.75%

The European Central Bank cut its main interest rate to a record low of 0.75 per cent and its deposit rate to zero on Thursday to help tackle the euro zone crisis that threatens to push the bloc's deteriorating economy back into recession.

The ECB cut the interest rate on its deposit facility to 0.0 per cent, effectively encouraging banks to lend their funds in the market to other banks overnight, where they receive a higher interest rate, currently about 0.3 per cent.

The rate on the marginal lending facility went down to 1.50 per cent.

Copyright: Thomson Reuters 2012