The European Central Bank (ECB) has slashed its key interest rate by half a percentage point to 3.25%, its fourth cut this year and bigger than many economists had dared to hope.
Financial markets had been optimistic the ECB would cut interest rates by at least one quarter of a percentage point to shore up the eurozone's flagging economy.
'Long overdue' The ECB has been criticised for failing to match the aggressive action of the US Federal Reserve, which has cut rates 10 times this year to stimulate growth.
The case for action has been mounting fast following the 11 September terrorist attacks and the subsequent string of gloomy economic data.
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