At today’s meeting the Governing Council of the European Central Bank took the following monetary policy decisions:
The minimum bid rate on the main refinancing operations of the Eurosystem will be decreased by 50 basis points to 3.25%, starting from the operation to be settled on 12 November 2008.
The interest rate on the marginal lending facility will be decreased by 50 basis points to 3.75%, with effect from 12 November 2008.
The interest rate on the deposit facility will be decreased by 50 basis points to 2.75%, with effect from 12 November 2008.
Meanwhile the Bank of England has announced a drastic 1.5% cut in interest rates in what is being seen as a dramatic attempt to rescue the rapidly declining British economy. This cut brings the British base rate down to just 3%.