European Central Bank cuts key rate to new low Posted on April 2, 2009April 2, 2009 by Your Financial FactSheet Goldstein, MarketWatch: “European Central Bank cuts key rate to new low” The European Central Bank, confronting a recession and barely a flicker of inflation in the euro zone, reduced Thursday its key interest rate to 1.25% — a fresh record low but a smaller-than-expected cut that stunned markets.