ECB cuts rates for first time in five years

6th Jun 2024 11:18

(Sharecast News) - The European Central Bank cut interest rates by 25 basis points on Thursday, as widely expected.

The deposit rate was reduced to 3.75% in what marked the first cut from the ECB in five years.

It said: "The Governing Council today decided to lower the three key ECB interest rates by 25 basis points.

"Based on an updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it is now appropriate to moderate the degree of monetary policy restriction after nine months of holding rates steady."