The European Central Bank (ECB) has once again reduced its interest rates for the fourth consecutive policy session, aligning with market expectations. This decision comes in response to the euro area's economic slowdown observed in the last quarter of 2024, alongside mounting inflationary pressures.
The Governing Council, under the guidance of ECB President Christine Lagarde, has decreased the deposit rate by 25 basis points, bringing it to 2.75 percent. Similarly, the main refinancing rate has been lowered by the same margin to 2.90 percent, with the lending rate now at 3.15 percent.
Since September, the ECB, the central bank for the eurozone, has consistently cut interest rates at each rate-setting session by 25 basis points.
In an official statement, the ECB remarked, "The disinflation process is well on track." Furthermore, the bank noted that "Inflation has continued to develop broadly in line with staff projections and is expected to meet the Governing Council's medium-term target of 2 percent by the end of this year."
