Deposit rate slashed to 2.5%, its lowest since early 2023
The European Central Bank (ECB) on Thursday lowered its three key interest rates by 25 basis points, meeting market forecasts.
This marked the fifth consecutive rate cut since the ECB initiated its easing cycle last June.
The key deposit rate now stands at 2.50%, its lowest level since early 2023.
The interest rates on the main refinancing operations and the marginal lending facility were cut to 2.65% and 2.90%, respectively.
Preliminary estimates by Eurostat for the eurozone annual consumer inflation rate were at 2.4% in February.
Core inflation, which excludes volatile food and energy prices, eased to 2.4% in February from January's 2.5%, according to preliminary estimates.
The euro area's GDP in the fourth quarter of 2024 grew 0.1%, following a 0.4% growth in the previous quarter.
The annual inflation in the EU's first and second biggest economies, Germany and France, eased in February, with France's rate hitting a four-year low.
These slowdowns in inflation also bolstered the ECB's rate-cut decision.
This decision came after the US imposed tariffs on Canada, Mexico and China, and also on all global imports of some products.
Hello, the comments you share on our site are a valuable resource for other users. Please respect other users and different opinions. Do not use rude, offensive, derogatory, or discriminatory language.
The floor is all yours.
