Central Banks
ECB Delivers Landmark Rate Cut With No Signals on Next Steps
- Deposit rate lowered to 3.75% from 4%, as economists expected
- Hot inflation, wage data have pared investors’ easing wagers
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The European Central Bank delivered the interest-rate reduction it’s been flagging for months — moving away from a record high — but stopped short of indicating more may follow.
Officials led by President Christine Lagarde lowered the key deposit rate by a quarter-point to 3.75% on Thursday, as expected. Having held it at 4% for nine months, they said the inflation outlook has improved “markedly,” though they’ll “keep policy rates sufficiently restrictive for as long as necessary” after also raising projections for prices.