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New ECB Head Cuts Key Rate In Surprise Move

New ECB President Mario Draghi speaks during his first news conference in Frankfurt on November 3.
The European Central Bank (ECB) has unexpectedly cut its interest rate to 1.25 percent from 1.5 percent in an attempt to boost a weakening economy.

New ECB President Mario Draghi told a news conference that the prospects of weak eurozone economic growth led to the bank's surprise cut.

Eurozone growth is expected to slow down in the last quarter of the year, and the rate cut is aimed at preventing the area from slipping into recession.

Draghi this week replaced Jean-Claude Trichet, who held the ECB head position for eight years.

A summit of G20 leaders is under way in Cannes, with Europe's debt crisis topping the agenda.

compiled from agency reports