European Central Bank cuts rate to 1%

The European Central Bank cut its key interest rate to a record low of 1 percent yesterday, and may offer banks longer-term loans to stem the region's worst recession since World War II.

ECB officials meeting in Frankfurt lowered the benchmark rate by a quarter point, as predicted by all 53 economists in a Bloomberg News survey.

The Bank of England left its key rate at 0.5 percent and increased its asset-purchase program. ECB President Jean-Claude Trichet has promised to unveil new policy measures to tackle the crisis.