European Central Bank announces interest rate decision

The European Central Bank (ECB) has cut its three key policy rates by 25 basis points, in line with market expectations. With this move, the ECB has implemented interest rate cuts for the third consecutive meeting, marking its fourth rate reduction decision of the year.

In a statement released by the ECB today, it was announced that the deposit facility rate has been lowered from 3.25 percent to 3 percent. The bank also reduced the main refinancing rate and the marginal lending facility rate by 25 basis points each, bringing them to 3.15 percent and 3.40 percent, respectively.

The ECB statement included the following: "The disinflation process is on track. ECB staff expect headline inflation to average 2.4 percent in 2024, 2.1 percent in 2025, 1.9 percent in 2026, and 2.1 percent in 2027, when the expanded EU Emissions Trading System comes into effect."