ECB rate cut stuns market

MARKET NEWS

FRANKFURT – The European Central Bank surprised currency markets last week with a 25 basis point interest rate cut, but some observers said it has undermined the credibility of the ECB.

“This is not the magic bullet the euro zone needs,” said Stacey Seltzer, foreign exchange economist at Brown Brothers Harriman in London. “People are now questioning the ECB’s credibility.”

The central bank has stood firm in recent months amid pressure from investors and politicians, both in Europe and globally, to

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