The European Central Bank shadow council, a group of 15 economists and portfolio managers who watch latest developments in the 17-nation region and release recommendations each month, said the ECB should slash interest rate back to 1% from the current 1.50% to salvage the economy from facing a double dip recession.

This recommendation is based on the latest data which showed decline in growth in the second quarter as well as contraction in manufacturing and confidence in August, suggesting the sluggish pace would continue in the third quarter, especially amid the undergoing slowdown engulfing global major econmeis.