ECB cuts interest rate to record low of .05%

The European Central Bank cut interest rates to a fresh record low yesterday, and launched a new scheme to push money into the flagging eurozone economy.

In a series of measures underscoring growing concern about the currency bloc’s health, the ECB cut its main refinancing rate to 0.05% from 0.15% and drove the overnight deposit rate deeper into negative territory, now charging banks 0.20% to park funds with it.

The eurozone flatlined in the second quarter of the year and the Ukraine crisis is now weighing heavily on business confidence.