ECB cuts main interest rate to record-low 1%

Special
Report: Global Financial Crisis

BERLIN, May 7 (Xinhua) -- The European Central Bank (ECB) on Thursday cut its main interest rate by 0.25 basis points to a record-low 1 percent.

The ECB cut its rate for the fourth time this year to combat the ongoing international financial crisis.

The bank also reduced its marginal lending rate by 50 percentage points to 1.75 percent, but left the interest rate on its deposit facility unchanged at 0.25 percent.

ECB President Jean-Claude Trichet was expected to announce the results of discussions on measures to boost the economy of the continent later on Thursday.

The 16-nation eurozone has been hit hard by the global economic turmoil, with the forecast of a economic contraction of 4 percent and a rising unemployment rate.

The ECB since October has cut its main interest rate by 325 basis points.