ECB cuts rates to record low 1%

At the European Central Bank's monthly meeting, President Mario Draghi confirmed widely held market expectations.
(SOUNDBITE)(English) ECB PRESIDENT MARIO DRAGHI SAYING:
"The governing council decided to lower the key ECB interest rates by 25 basis points."
The decision, which wasn't unanimous, puts interest rates at a record low of 1 per cent, as the region teeters on the brink of recession.
(SOUNDBITE)(English) ECB PRESIDENT MARIO DRAGHI SAYING:
"The intensified financial market tensions are continuing to dampen economic activity in the euro area and the outlook remains subject to high uncertainty and substantial downside risks."
Draghi said the ECB would offer further liquidity measures to help ease the region's debt crisis.
Including offering banks unlimited three year funding, and easing collateral and reserve requirements.
The announcement came just hours before a crucial EU summit, where pressure is on European leaders to come up with a bold plan to end the region's debt crisis.
(SOUNDBITE)(English) ECB PRESIDENT MARIO DRAGHI SAYING:
"If the leaders make substantial progress, I think we will see confidence returning. And so what looks like a spiral of self fulfilling negative confidence, will stop."
World stocks and the euro gained slightly on the rate announcement.
Kirsty Basset, Reuters.