European Central Bank policymakers backed further policy easing on Friday just a day after the bank's fourth straight rate cut, despite fresh surveys pointing to continued inflation momentum. The ECB cut interest rates to 2.
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The European Central Bank on Thursday cut interest rates by a quarter of a percentage point, saying it expects inflation to fall back to its target later in the year and signaling that further easing is likely in coming months.
During the press conference, ECB President Christine Lagarde indicated that the central bank's macro assessment had hardly changed from its December meeting. The ECB still sees the disinflationary process on track and expects a pick up in demand, though it acknowledges the near-term weakness of the eurozone economy.
Despite still elevated domestic inflation, weak growth and inflation projected at target this year strengthen the case for further rate cuts.
Fri, 31st, – CET DE German prelim CPI. Fri, 31st, 14:30 CET CA Gross domestic product. Fri, 31st, 14:30 CET US Core PCE price index.
ECB cuts the deposit rate by a quarter point to 2.75 per cent as expected and offers little shift in tone from December as it continues to move policy away from restrictive territory
The ECB (European Central Bank) continued policy normalisation today, with another 25 basis points (bps) worth of cuts across all three benchmark rates. This marks the fourth consecutive rate reduction, bringing the Deposit Facility Rate, the Refinancing Rate, and the Marginal Lending Facility Rate to 2.75%, 2.90%, and 3.15%, respectively.