Fed rate cuts will not sway European counterpart

GIVEN the US has slashed its key interest rate five times since August 2007 to 3% from 5.25%, many people are puzzled by the failure of the ECB to follow suit.

The US has cut rates by 2.25% since August to prevent a big recession.

Britain cut rates by 0.25% yesterday for the second time in three months while Europe’s central bank again held rates at 4%, the level they have been at since June.