European banks slash interest rates
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Rate cut: A city worker outside the Bank of England (AFP: Adrian Dennis)
Central banks have made another big round of interest rate cuts as Europe struggles to cope with the global economic downturn.
The Bank of England has cut its key lending rate by one percentage point to 2 per cent, which is its lowest level for more than half a century.
Europe's Central Bank cut its main interest rate by 75 basis points to 2.5 per cent.
In France, President Nicolas Sarkozy unveiled a $50 billion stimulus package designed to help his country avoid the worst effects of the crisis.
"Our answer to the crisis is a massive investment drive because that's the best way to support businesses and to protect jobs today, because it's the only way to prepare our workforce for the future, and because we have underinvested for far too long," he said.
New statistics show that the eurozone's economy shrank by 0.2 of a per cent in the July to September period.
It is the second straight quarterly contraction and the first time the bloc has fallen into recession.
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