With less than a month to go to the launch of the European single currency, central banks across Europe have simultaneously cut one of their main interest rates.

The rate at which the central banks deal in securities has been reduced to three per-cent.

The BBC economics correspondent says the cut reflects mounting anxiety about the fall in growth rates around the world, but it still surprised some analysts: it was thought it would be left to the new European Central Bank to make reductions in interest rates.

In less than a month there will in effect be one currency in the eleven member countries of the European Monetary Union, and therefore one set of interest rates.