Central Banks

ECB Cuts Rates for Fifth Time as Euro-Zone Economy Flatlines

  • Deposit rate lowered by quarter-point to 2.75%, as expected
  • Officials stick to meeting-by-meeting approach to set policy
WATCH: The rate cut is the ECB’s fifth since June. Lizzy Burden reports from Frankfurt.Source: Bloomberg
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The European Central Bank lowered borrowing costs for a fifth time since June, with the region’s economy stalling and the 2% inflation target in reach.

Officials reduced the deposit rate by a quarter-point to 2.75% — as predicted by all analysts in a Bloomberg poll. They continued to describe their current monetary-policy stance as “restrictive,” signaling more loosening is in the pipeline, while reiterating that they’re not pre-committing to a particular rate path.