ECB Cuts Key Interest Rates Amid Slowing Economic Outlook

The European Central Bank (ECB) announced significant rate cuts on Thursday in response to mounting concerns over economic slowdown in the Eurozone. The ECB lowered its key interest rates across the board, signaling a shift towards more accommodative monetary policy.

The interest rate on the marginal lending facility was reduced by 60 basis points to 3.9%, down from 4.5%, while the deposit facility—commonly regarded as the benchmark rate—was cut by 25 basis points to 3.5%. Additionally, the rate on the ECB’s main refinancing operations, a critical tool for controlling money supply, was slashed by 60 basis points to 3.65%.

These cuts reflect the ECB’s ongoing efforts to stimulate growth and manage inflationary pressures, as the Eurozone faces economic headwinds and a weaker inflation outlook. Investors are now focused on whether more rate cuts could be on the horizon in the coming months.