The European Central Bank again lowered the base rate.

The European Central Bank reduced the base rate in the euro at 0.25 percentage points to a new historic minimum of 1.25 per annum. This is stated in the official press release of the ECB.
The last time the rate in the euro area declined in early March - when the ECB voted for the reduction of 0,5 percentage points to six per cent per annum. At this time, many investors in the market also expects the rate will decrease by half a percentage point to one per cent.
Central Bank of the world were forced to go on the record reduction in rates to reduce the cost of interbank lending. This is needed to combat the liquidity crisis, which affected the credit market and caused a global economic downturn. For example, the U.S. Fed had to lower the rate to 0-0,25 per annum.
At the same time in several other countries, high rates, because it avoids the excessive outflow of capital from the economy of the state. One such country is Russia. In March, the Central Bank said that it might be a little lower the refinancing rate in the second quarter.
The base rate - one of the tools of influence on the economy by monetary authorities. If it decreases, it means that the authorities wanted to spur economic activity, but to sacrifice inflation. The pace of price growth in the euro area in March reached a historic minimum of 0.6 percent over 12 months.
Typically, lowering the base rate influences the currency market: the lower rate in the euro area, the greater the pressure exerted on the euro.