The European Central Bank President, Mario Draghi is expected to reduce the main refinancing rate from 1.25% to 1% today.

Some economists believe the cut could be as much as 0.5% as the ECB tries to reduce the pressures on Banks and ease borrowing costs.

The ECB may also extend the period of longer term loans, to add liquidity to a bruised and battered financial system, at a time when it is badly needed.