INSTANT VIEW - ECB cuts rates by 75 bps to 2.50 percent

FRANKFURT (Reuters) - Following are comments from analysts after the European Central Bank cut interest rates by 75 bps to 2.50 percent.

ECB president Jean-Claude Trichet will explain the decision at a press conference starting at 1:30 p.m. British time.

ANALYSTS' COMMENTS

Latest comments

HOWARD ARCHER, IHS GLOBAL INSIGHT

"The ECB's cutting of interest rates by 75 basis points from 3.25% to 2.50% seems somewhat tame compared to the recent moves by a number of central banks, including the 250 basis point cut by the Bank of England in November and December combined and the 175 basis point cut by the Swedish central bank today. At least though, it is a step up from the 50 basis point cuts that the ECB enacted in both October and November.

The ECB's reluctance to cut by more than 75 basis points seems to stem from a desire to keep some ammunition back and also concern that too big a cut could hurt confidence."

"At this stage, we suspect that the ECB will cut interest rates by at least another 50 basis points in January and bring them down to 1.00% in the first half of 2009."

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