Discount rate in the euro lowered to a maximum of 10 years amount.

European Central 4 Dec, 2008 lowered the discount rate by 75 basis points to 2.5 per cent annually, reports Bloomberg. This is the strongest decline in rates over the past ten years. By this measure, the ECB expects the euro to support the economy, which for the third quarter of 2008 came into recession.
Earlier, December 4, Bank of England also lowered the discount rate on percentage point to two per cent per annum. However, the rate fell to its lowest level since 1951. The last time the Bank of England base rate knowingly 6 November, 2008. It was reduced by half a percentage point from 4.5 to 3 per cent per annum.
The European Central Bank and Bank of England expect that lowering the discount rate to stimulate consumer demand and to reduce payments on loans. Recall, through changes of power rates in different countries can influence the situation in their markets. Thus, by raising rates could reduce inflation and improve the exchange rate. Lowering rates is counterproductive.
Over the past month, many countries experienced economic slowdown due to the global financial crisis, lowered interest rates. For example, December 4, Central Bank of Sweden lowered the base rate by 1.75 percentage point to two per cent per annum. Earlier, interest rates lowered the central U.S., Japan, Canada, China and other countries.