clipped from eurocurrencynews.com

Despite aggressive steps taken by governments around Europe, such as Interest Rate reductions and stimulus spending plans, reports show that the Euro-Zone is headed towards deep recession. The EUR slipped 0.5% against the Dollar to $1.2458. The European economy continued to contract through 2008, leading to economists foreseeing no growth probably until the 3rd quarter of 2009. With inflation falling sharply, the European Central Bank has all the justification it needs for a further Interest Rate cut from the current level of 3.25%. Analysts foresee additional 50 basis point cut in December.