European Central Bank cuts rates

The European Central Bank (ECB) has cut its benchmark interest rate to a new low of 0.5% after recent data showing manufacturing activity shrank in April across the eurozone. The widely expected cut to 0.50% from 0.75% is the first change for 10 months. ECB president Mario Draghi told a news conference: “Weak economic sentiment has extended into spring of this year. The cap on interest rates should continue to support prospects for a recovery late in the year.” May 3, 2013