A ramp-up in defense spending doesn’t have to lead to slower interest-rate reductions by the European Central Bank, according to Governing Council member Olli Rehn.

There are still plenty of upside risks to euro zone inflation, so the European Central Bank must remain open-minded on whether to press ahead with interest rate cuts or pause them, Slovak central bank Governor Peter Kazimir said on Monday.

Hellenic Bank on Tuesday announced that the reference rate for loans linked to the European Central Bank's (ECB) base rate will be reduced by 0.25 per cent, from 2.90 per cent to 2.65 per cent, effective from March 12,