Trichet Says European Central Bank May Reduce Rates Again

An ECB President said the bank may cut interest rates again at its next policy meeting as the financial market crisis damps inflation pressures. Stock markets tumbled around the world, extending the worst monthly plunge in 70 years, on concern the financial crisis will develop into a prolonged economic downturn. Europe's economy is on the brink of a recession, with the region's manufacturing and service industries contracting at a record pace in October and the Dow Jones Stoxx 600 index down 47% this year. The ECB, which raised interest rates as recently as July, joined a globally coordinated rate cut, reducing its benchmark by half a point to 3.75%. The price of oil, the main inflation driver, has more than halved from its peak of $147.11 a barrel in July. Trichet said the decision whether to cut rates again hinges on the assumption