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ECB set to cut interest rates to new low

The European Central Bank (ECB) is expected to cut interest rates later on today (2 May) as it attempts to boost growth.

Fears surrounding the eurozone economy are still prevalent and the lowering of the interest rates would see them reach an all-time low.

The rates, which are currently at 0.75 per cent, have not been cut for ten months but raising them has been deemed necessary as a result of concerns over the economy and receding inflation fears.

Official data released this week revealed record high unemployment in the eurozone, with inflation at a three-year low.

This has shrouded the eurozone economy in mystery as many of its members remain either in recession or are suffering from a poor rate of growth

Calls for European countries to move away from austerity measures have grown in recent months, with many calling for a greater focus on stimulus measures.

The ECB is due to announce its decision at 12:45 BST.

By Tony Aynsley