Central Banks
ECB Cuts Rates Again as Inflation Fades and Economy Stumbles
- Deposit rate lowered to 3.5% from 3.75%, as expected
- Markets are betting on one or two more reductions this year
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The European Central Bank lowered interest rates for the second time this year with inflation receding toward 2% and concerns about the economy building.
The key deposit rate was cut by 25 basis points to 3.5% — as all analysts polled by Bloomberg predicted. The ECB reiterated that it can’t commit to a specific course for borrowing costs.