The European Central Bank has lowered its benchmark interest rate to 0.25% from 0.5% - a new record low.
The European Central Bank has cut its key interest rate by quarter point to a new all-time low of 0.5 per cent.
The European Central Bank (ECB) said it remains committed to providing liquidity despite Cypriot lawmakers overwhelmingly rejecting a levy on savers - a key term of the €10 billion proposed bailout.
"The ECB takes note of the decision of the Cypriot parliament and is in contact with its troika partners," the bank said in a statement. "The ECB reaffirms its commitment to provide liquidity as needed within the existing rules".
The central bank said it is in contact with the International Monetary Fund and its European Union partners on the issue.
The European Central Bank has cut the Eurozone growth forecast for 2013 to -0.3% from +0.5%
The European Central Bank should consider ways to ensure that the cash it lays out in its liquidity operations reaches smaller firms and consumers, executive board member Benoit Coeure said today.
Coeure told Slovakian newspaper Hospodarske Noviny in an interview that the ECB would not allow sovereign bond yields to rise due to investors betting against the euro.
"Whether our funding operations should be better targeted to the financing of the real economy, and particularly of SMEs, even though the implementation would obviously be difficult, would deserve further thoughts," Coeure said, according to a transcript provided by the ECB.