The ECB cuts rates by 25 basis points

The Governing Council has decided to reduce by 25 basis points the three reference interest rates. Therefore, interest rates on deposit facilities, main refinancing operations and marginal lending operations will be reduced to 3.25%, 3.40% and 3.65% respectively, with effect from 23 October 2024.

“Economic activity has resulted to some extent weaker than expected over the past few months and growth should remain low”. The president of the ECB, Christine Lagarde, said this at a press conference in Ljubljana. Lagarde added that “the risks for economic growth remain oriented towards the downside”.

For the future “we remain dependent on the data, decisions will be made from meeting to meeting”, he added, specifying that “We are not committed to any predetermined rate reduction path“.

For the Eurozone, “based on the data we do not see a recession” coming, but rather “a soft landing”, he finally concluded.