Highlights
As expected, the ECB lowered its key interest rate by 50 basis points to 3.25 percent. It last lowered rates on October 8 by 50 basis points in concert with the Federal Reserve, Banks of England and Canada and other international central banks. The October rate cut was the first by the ECB in five years. ECB president Jean Claude Trichet said last week that easing inflation had cleared the way for lower official borrowing costs. Collapsing German business confidence and today's orders release has made it all too clear that eurozone growth has been devastated by the bank crisis and continues to deteriorate rapidly. The German Ifo institute reported that business optimism about the next six months had seen the largest drop on record. As the eurozone economy slows, the ECB is likely to cut official borrowing costs whenever possible. But it will be wary of calls for aggressive cuts as tensions in money markets have left it uncertain about the effectiveness of loosening monetary policy, and the governing council will want to keep ammunition in reserve. Needless to say, everyone will be listening closely to Trichet's opening remarks at his press conference that follows shortly.

2008 Release Schedule

Released On: 1/10 2/7 3/6 4/10 5/8 6/5 7/3 8/7 9/4 10/2 11/6 12/4