European states reduce rates

The central banks of Sweden, Turkey and Hungary all cut interest rates yesterday, united by the theme of the damage inflicted on their economies by Eurozone economic weakness. Sweden’s Riksbank lowered rates for the fourth time in a year to one per cent, while Hungary’s rate was trimmed to a two-year low of 5.75 per cent. Turkey’s base rate is now at 5.5 per cent, after a quarter-point cut.