The European Central Bank cut rates by half a point to a record low of 1.5% yesterday and signalled that more cuts could be on the way.
Jean-Claude Trichet, head of the ECB, said. 'We did not decide ex ante that this was the lowest point that we could attain. Further decisions will depend on facts, figures, judgment on the basis of Governing Council discussions.'
Mr Trichet also said that the Bank's Governing Council was studying possible 'non-standard monetary measures', adding that nothing could be ruled out. While the Bank cannot directly buy government bonds, it could buy up company debt in an attempt to boost the economy.