The European Central Bank is doing all that is possible to shore up the economy, which is sinking deeper into recession, European finance ministers said on the sidelines of the meeting of European Union finance ministers in Prague.

On Thursday, the ECB lowered its key interest rate to a new low of 1.25% from 1.5%, while economists had expected half a point cut.

In his regular press conference following the interest rate decision, ECB President Jean-Claude Trichet signaled that there is still room to cut the benchmark interest rate for Eurozone. Responding to reporters' questions, Trichet said he would announce full details of any further non-standard measures next month.

Cypriot Finance Minister Charilaos Stavrakis said he expected a 50 basis point cut. He applauded ECB's decision saying that the bank had done a good job.

The central bank has room for making additional cuts, Finnish Finance Minister Jyrki Katainen said.

Portuguese Finance Minister Fernando Teixeira was of the view that the ECB is making an effort to ease policy.

Finance ministers also welcomed decisions taken during the G20 summit held in London on Thursday. German Finance Minister Peer Steinbrueck said the summit made great progress, while his French counterpart Christine Lagarde said she is very satisfied with the results of the summit.

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