Media playback is unsupported on your device

Mario Draghi explains ECB interest rate cut decision

2 May 2013 Last updated at 14:42 BST

The European Central Bank (ECB) has cut its benchmark interest rate to a new record low amid ongoing worries about the eurozone's economic health.

The widely-expected cut to 0.50% from 0.75% is the first in 10 months.

Speaking at a press conference, ECB president Mario Draghi explained the reasons behind the decision, citing concerns about subdued monetary and loan dynamics - as well as weak economic sentiment.

"The cut in interest rates should contribute to support prospects for a recovery later in the year", he added.