Commenting on today’s European Central Bank (ECB) rate cut of 0.75%, David Kern, Chief Economist at the British Chambers of Commerce, said:

“Although this cut was relatively large for the usually hawkish ECB, it was totally inadequate in the face of sharply worsening recessionary pressures in the eurozone. 

“This move will reinforce the ECB’s reputation as being more reluctant than other central banks to forcefully deal with the serious falls in activity.

“Unless the ECB accelerates the pace at which it is prepared to cut rates, the downturn in the eurozone will be very severe. The implications of such a situation for UK exporters are worrying.”