The European Central Bank (ECB) announced on Thursday its decision to cut the deposit interest rate for the fourth time this year, reducing it from 3.25% to 3%. The move aims to bring inflation within the eurozone closer to the bank’s target range amid ongoing economic challenges.
The ECB emphasized that it remains open to further monetary easing as inflation shows signs of nearing the desired levels, while the region’s economy continues to experience weakness.
The central bank also hinted at the possibility of additional rate cuts in the coming months. This follows a period of aggressive monetary tightening, with the deposit rate reaching an unprecedented 4% in June earlier this year.
The latest rate adjustment underscores the ECB’s commitment to stabilizing prices and supporting economic recovery within the eurozone, as policymakers navigate a delicate balance between curbing inflation and fostering growth.
