Interest rates have been slashed across Europe in a bid to turn the dire economic situation around.

The European Central Bank cut the rate for the Eurozone by three quarters of a point to 2.5 percent.

The decision follows data showing that the Euro-currency bloc has entered its first recession, with the economy shrinking by 0.2 percent in both the second and third quarters.

The Bank of England took the UK’s rates to their lowest level for 57 years: a full percentage point reduction to just two percent.

The BoE has never taken rates lower than the two percent threshold since its creation in the 17th century.

Earlier in the day, Sweden’s central bank set the tone. It took its rates down to two percent after a sensational premature cut of 1.75 percent, more than triple its previous biggest one-day reduction.

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