ECB Continues Rate Cuts Amid Economic Adjustments
In a decisive move, the European Central Bank (ECB) has announced a further reduction in its key interest rates by 25 basis points. This marks the fourth consecutive meeting where the ECB has opted to cut rates, signaling a strong commitment to steering the economy towards stability.
The adjustments, effective from February 5, will see the deposit facility rate drop to 2.75%, the main refinancing operations rate to 2.90%, and the marginal lending facility rate to 3.15%. These changes come in response to inflation trends aligning with the ECB's forecasts, projecting a return to the medium-term target of 2% annual price growth by 2025.
Emphasizing a data-driven approach, the ECB Governing Council reaffirmed its dedication to making informed decisions that support sustainable economic growth. This strategic move underscores the central bank's proactive stance in navigating the complexities of the current economic landscape.
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