The European Central Bank has decided to cut key interest rates by 25 basis points, the first change in monetary policy in 2025, UNN reports citing the regulator.
"Today, the Governing Council of the European Central Bank has decided to cut three of the ECB's key interest rates by 25 basis points. Accordingly, the interest rates on the deposit facility, the main refinancing operations and margin lending will be reduced to 2.75%, 2.90% and 3.15%, respectively, starting from February 5, 2025," the Central Bank said.
The rate cuts are based on an updated assessment of the inflation forecast, the dynamics of core inflation, and the strength of monetary policy transmission.
"Inflation continues to develop in line with staff forecasts and should return to the Governing Council's medium-term target of 2% this year," the regulator emphasized.
According to the ECB, wage growth is moderate, as expected, and profits partially mitigate the impact on inflation.
Recall
Last Friday, the Bank of Japan raised interest rates to the highest level since the 2008 global financial crisis and revised its inflation forecasts, emphasizing its confidence that wage growth will keep inflation at 2%.