The European Central Bank has cut its interest rates by 25 bps in the fourth reduction this year.
It reduced the rate it pays on bank deposits to 3 per cent from 3.25 per cent.
The rates at which it lends to banks for a week and one day were cut to 3.15 per cent and 3.4 per cent respectively.
These will be effective from December 18.
Domestic inflation in the zone has edged down, but stays high.