European Cenrtal Bank pursues interest cut cycle with 25 basis point reduction
A sign of the European Central Bank (ECB) stands in front of the bank's headquarters in Frankfurt am Main, western Germany, on Jan. 25, 2024. (AFP Photo)
European Central Bank announced that it has decided to reduce the three key rates by 25 basis points, aligning with the market expectations.
The European Central Bank (ECB) announced its monetary policy decisions following its first board meeting of the year on Thursday.
According to the statement, the bank lowered its deposit facility rate from 2.75% to 2.50%. The refinancing rate and the marginal lending rate were also cut by 25 basis points, bringing them to 2.65% and 2.90%, respectively.
With this move, the ECB has now implemented its sixth rate cut since March 2016 for the refinancing and marginal lending rates and since September 2019 for the deposit facility rate.
The decision comes amid sluggish economic growth across the eurozone and a February annual inflation rate of 2.4%, close to the ECB’s 2% target.
