ECB cuts interest rates

The European Central Bank has cut its main lending rate by a further half of one percentage point today in an effort to boost economic activity in the euro-zone.

The rate is now down to just 2%.

The ECB has cut rates four times since October in response to the growing global recession.

Economists say they expect rates to fall even further this year.

At today's meeting, the Governing Council of the ECB set the interest rate on the marginal lending facility at 3%, with effect from January 21.

The interest rate on the deposit facility will be set at 1%, with effect from January 21.