ECB open to further cut in interest rates

The ECB cut interest rates for the first time in 10 months yesterday and held out the possibility of further action to support the recession-hit eurozone economy.

Responding to a drop in eurozone inflation well below its target level and rising unemployment, the ECB lowered its main rate by a quarter percentage point to a record low 0.50%.

ECB president Mario Draghi — promising to provide as much liquidity as eurozone banks need well into next year and to help smaller companies get access to credit — also indicated that some policymakers had pushed for a bigger cut.