PHOTO
A euro currency sign is pictured inside the headquarters building of the European Central Bank (ECB) as a person walks by ahead of a press conference following the meeting of the governing council of the ECB in Frankfurt am Main, western Germany, on June 6, 2024. The European Central Bank is expected to start cutting interest rates from record highs, its first reduction in nearly five years, but volatile inflation means the path ahead is uncertain. (Photo by Kirill KUDRYAVTSEV / AFP)
The European Central Bank (ECB) has cut interest rates by 0.25% on deposit facility, following a period of weak European economic growth.
The rate now stands at 3.5%, down from 3.75%, after the bank last cut the rate in in June.
The bank was widely expected to make the cut due to slow economic growth and to encourage inflation to continue to cool back towards its target of 2%.
Markets are now waiting to see whether the bank will pause interest cuts at its next meeting in October, as happened in July, before considering another cut in December.
The UK’s Bank of England and the US Federal Reserve are both expected to cut interest rates next week.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
