After repeated statements by the president of the European Central Bank (EZB), Jean-Claude Trichet, about the economy sliding even further and the EZB still seeing potential for interest rates to be lowered even further, most experts expected another significant lowering of interest rates by the ECB. However, the key interest rate was now lowered by just 0.25% to 1.25%.
This new key interest rate will first be applied on April 8th. At the same time the following rates will be lowered as well:
- The marginal lending facility is to be lowered by 0.25% to 2.25%.
- The deposit facility is to be lowered by 0.25% to 0.25%.
