ECB cuts key rate to 1.25% from 1.5% (by William L. Watts)
FRANKFURT (MarketWatch) -- The European Central Bank on Thursday cut its key lending rate to 1.25% from 1.5%. Economists had largely expected the ECB to maintain the rate at 1.5%, but held out the possibility of a cut. New ECB President Mario Draghi is set to hold his first monthly news conference at 2:30 p.m. local time, or 9:30 a.m. Eastern.