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The new central bank boss, Mario Draghi, defied the expectations of most analysts, who said a rate cut was more likely next month. The former head of the Italian central bank, who took over from Jean-Claude Trichet this month, instead asserted his authority. The ECB also cut the interest rate on its deposit facility to 0.5% and the rate on the marginal lending facility to 2%. Trichet was widely criticised for raising rates by 0.5% in the spring. Spanish and Greek politicians condemned him for make borrowing costs higher at a sensitive time for the single-currency bloc. Trichet said the hikes were necessary to tackle inflation. In his valedictory speech, he said the ECB's task of maintaining low and stable inflation had been achieved in his eight-year term and over the 12-year life of the euro. Ian Kernohan, an economist at the investment firm RLAM, said: "Although the market was expecting a rate cut in December, it can't have been a huge surprise that the ECB cut rates today, given the very poor run of economic data in Europe. "I don't think this move has much to do with change at the top of the ECB. The economic backdrop has altered dramatically since the summer, and I suspect Trichet would have agreed to this move, if he was still president." Natalia Aguirre, research director at Renta 4 brokerage in Madrid, said: "There's no doubt it's good for all of the heavily indebted economies such as Spain. Now we just need it to be transferred to the Euribor review. "The markets right now needed help from every side." Pierre Ellis, global economist at Decision Economics in New York, said: "This is a response to the weakening European economy. There is not a situation to further roil the market, given the situation in Greece. They are in a situation that makes conforming to a pure inflation target a charade."