5 July 2012, 17:36  The European Central Bank cut its benchmark interest rate to 0.75%

The European Central Bank cut its benchmark interest rate to below one percent for the first time in its existence. The main refinancing rate was cut by a quarter-point to 0.75 percent. The move was in line with economists' expectations. The central bank also lowered its deposit rate by 25 basis points to zero. Some economists were also looking for a reduction in this rate, but were undecided on the size. The marginal lending facility rate was slashed to 1.50 percent from 1.75 percent. The new rates will come into effect on July 11. ECB President Mario Draghi is set to hold his regular post-decision press conference in Frankfurt at 8.30 am ET.

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