The European Central Bank said it would act as a safety net for the flagging Irish economy, but said it was up to Dublin to get its public finances under control. (Pictured: Irish Finance Minister Brian Lenihan)
The European Central Bank cut its key interest rate from a current level of 1.50% to an all-time low of 1.25% on Thursday, and it may take "other steps" to deal with a deepening recession.
In an interview with The Wall Street Journal, European Central Bank head Jean-Claude Trichet said the ECB could lower its interest rate further to free up credit. Trichet has approved EU governments' reluctance to boost their stimulus packages.
European Central Bank president Jean-Claude Trichet has said he believes 2010 will be a year of moderate recovery, but warned "it is not guaranteed. It depends on how the authorities, as well as citizens and companies, regain confidence".
The European Central Bank (ECB) has said they still "have a little room for manœuvre to cut rates again". The ECB cut its main rate earlier this month to an all-time low as the 16-nation eurozone experiences its first recession ever.
European Central Bank governor Christian Noyer says the ECB has already taken unorthodox emergency measures that can be termed "quantitative easing," to boost the economy and that it is ready to do more if necessary.
In his capacity as spokesman for the G10 central bankers meeting, European Central Bank head Jean-Claude Trichet said the global economy is "approaching" a pick-up point.
US stocks plunged following news on the lack of a new Chinese economic stimulus plan, and led by fears about the survival of GM. In Europe a sober mood followed yesterday's rallying, with the FTSEurofirst 300 index closing down 3.6 percent.
The European Central Bank is meeting to discuss how to restore European economies to health and is likely to reduce interest rates to record lows, analysts say. The ECB's main lending rate is at 2.0% but is expected to drop to 1.5%.
