Euro tumbles on ECB's shock rate cut

The European Central Bank has announced a surprise cut in interest rates to 0.25%, sending the single currency tumbling.

The bank reduced rates from an already record low of 0.5% after eurozone CPI inflation for October came in at 0.7%, far lower than both analysts' expectations and September's figure of 1.1%. Figures in a number of peripheral countries were lower still, with Greece already in deflation and Spain's inflation rate falling to just 0.1%. Moving to combat deflation, the ECB made the surprise decision to cut rates. Most market participants had expected the ECB to hold at 0.5% until December. The cut sent the euro reeling, with the single currency down against the dollar immediately after ...