Breaking News-(BN) ECB May Cut Key Rate to 1% as Pressure for New Tools Mounts

ECB May Cut Key Rate to 1% as Pressure for New Tools Mounts
2009-04-01 23:00:00.0 GMT

By Simone Meier and Gabi Thesing
April 2 (Bloomberg) -- The European Central Bank may cut its key interest rate to a record low of 1 percent today, increasing pressure on policy makers to use new tools to fight the worst recession in more than 60 years.
ECB officials meeting in Frankfurt will lower the benchmark rate by half a percentage point, according to 49 of 55 economists in a Bloomberg News survey. Such a reduction would probably mark the end of the ECB’s current round of rate reductions, a separate survey shows.
The ECB will announce its decision at 1:45 p.m. in Frankfurt as leaders from the Group of 20 nations meet in London to discuss ways to rescue the global economy. ECB President Jean-Claude Trichet will hold a press conference at 2:30 p.m.
U.K. Prime Minister Gordon Brown is scheduled to brief reporters on the G-20 talks about two hours later.