ECB Slices Interest Rates

Reuters

The European Central Bank cut its main interest rate to a record low of 0.75 percent and its deposit rate to zero on Thursday to help tackle the euro zone crisis that threatens to push the bloc's deteriorating economy back into recession.

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The ECB cut the interest rate on its deposit facility to 0.0 percent, effectively encouraging banks to lend their funds in the market to other banks overnight, where they receive a higher interest rate, currently about 0.3 percent. <EONIA=>

The rate on the marginal lending facility went down to 1.50 percent.

(Reporting by Marc Jones)