account
search
search

ECB lowers benchmark lending rate

  |   Dec. 8, 2011 at 10:39 AM
FRANKFURT, Germany, Dec. 8 (UPI) -- The European Central Bank said it would lower its key lending rate from 1.25 percent to 1 percent to add liquidity to the economy.

The expected move reverses the bank's mid-summer interest rate hike, which was enacted as the economic upturn in the early months of the year was beginning to fade. The bank, then under president Jean-Claude Trichet, was sharply criticized at the time for raising rates before the recovery solidified.

Thursday's move was widely expected and follows a November interest rate reduction from 1.5 percent to 1.25 percent.

Trichet successor Mario Draghi said at a press conference in Frankfurt, Germany, the rate was lowered to "ensure enhanced access of the banking sector to liquidity and to facilitate the functioning of the euro area money market."

Related UPI Stories
© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
x
Feedback