In a move that surprised no-one, the European Central Bank trimmed its benchmark interest rate by three-quarters of a percentage point, to 2.5 per cent - the largest move in the bank’s 10-year history. Following a year which saw the eurozone officially sink into recession as the bank nearly halved its key rate and provided ever-easier credit to ailing banks, the magnitude of ECB rate setter’s efforts has signalled the depth of concern over the deepening economic downturn. The central bank was mapping out a strategy deemed as being less drastic than that of the US Federal Reserve, (it remains above the current UK rate of 1.5%, and between 0% and 0.25% in the US), but nonetheless precedent-setting.

Whilst Eurozone's key interest rate is now at its lowest level since December 2005, it has yet to reach the lowest levels ever, but most economists expect they will do so early next year. The central bank president, Jean-Claude Trichet, made clear that the bank was considering that and more.

“If new decisions are needed, we will take new decisions,” Mr. Trichet said after a policy meeting in Brussels, later adding, “I exclude nothing.”