ECB cuts rates to 2% amid eurozone slowdown
Source: www-ft-com.ezp-prod1.hul.harvard.edu
- ECB cuts interest rates by 25 basis points to combat weak growth in the eurozone.
- Inflation is at 1.8 per cent, below the 2 per cent target, with services inflation cooling to 3.5 per cent.
- Markets expect more cuts ahead, potentially lowering borrowing costs for households and businesses.
The European Central Bank lowered its key deposit rate to 2 per cent, the seventh cut since June, as eurozone growth stalls. Policymakers, led by President Christine Lagarde, cited falling inflation and economic weakness. This move aims to support recovery but risks complicating future tightening if trade tensions rise. It matters because cheaper money could boost spending and investment across Europe.