Unanimous Decision Amidst Economic Shifts

In a significant move, the European Central Bank (ECB), under the leadership of President Christine Lagarde, has unanimously decided to cut interest rates. This decision, announced during a press conference on Thursday, saw no opposition from the Governing Council members, with the exception of Austrian central bank Governor Robert Holzmann, who chose to abstain.

Impact on Borrowing and Lending

Lagarde pointed out that the easing of the monetary policy has positively influenced corporate lending and mortgages, indicating a promising uptick in borrowing activities. She emphasized the ECB's commitment to a data-driven approach, acknowledging the considerable uncertainties surrounding price stability and growth risks. Lagarde also made it clear that the ECB would not pre-commit to any specific policy path, including the possibility of pausing rate cuts.