European Central Bank cuts interest rate to 1.25%

 European Central Bank cuts interest rate to 1.25%
European Central Bank cuts interest rate to 1.25%
European Central Bank cuts interest rate to 1.25%
European Central Bank cuts interest rate to 1.25%
European Central Bank cuts interest rate to 1.25%
European Central Bank cuts interest rate to 1.25%
Forexpros – The European Central Bank unexpectedly cut its benchmark interest rate for the first time in six months, it announced on Thursday.

The ECB said it cut the benchmark interest rate to 1.25% from 1.50%. Analysts had expected the ECB to keep rates unchanged at 1.50%.

ECB president Mario Draghi, who chaired his first interest rate meeting as ECB chief, was to comment on the decision at a press conference later in the day.

Following the announcement, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.26% to hit 1.3782.

Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 climbed 2.9%, France’s CAC 40 rallied 2.85%, Germany's DAX surged 3%, while the FTSE 100 added 1.15%