European Central Bank cuts rates by 25bp
“Undershooting target” becomes real threat as markets’ medium-term inflation expectations fall below 2%
The European Central Bank has made 25-basis point cuts on its three key interest rates.
Speaking from the Bank of Slovenia in Ljubljana, ECB president Christine Lagarde said today (October 17) that the bank had cut its deposit facility rate by 25bp “based on its updated assessment of the inflation outlook”. This, she said, had been affected by “recent downside surprises” in economic activity indicators.
From October 18, the deposit facility rate will be 3.25%, the main refinancing rate will be 3.4
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