The European Central Bank (ECB) has cut its main interest rate from 2.5 per cent to two per cent, the fourth time since September that it has been reduced.

ECB president Jean-Claude Trichet said the level had been trimmed in response to a situation of falling inflation and recession in the eurozone.

He added that the body will "monitor very closely" the economic situation before taking further decisions.

One effect of the cuts may be to lower the value of the euro against sterling, making it cheaper for investors to buy property in locations such as the French Riviera.

Yesterday afternoon showed the pound rising against the euro in the wake of the decision.

In further news that may interest French Riviera property buyers, VEF chief executive Trisha Mason said last week that many buyers have succeeded in purchasing a property in France in recent months after adjusting their expectations.

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