The European Central Bank (ECB) has reduced interest rates by 0.25 percentage points, bringing the benchmark deposit rate down to 3%. This marks the fourth rate cut since June, as the bank adjusts its policy stance amid signs of weaker-than-expected economic growth.
The latest cut lowers the deposit rate to its lowest level since March 2023. In a shift from its earlier hawkish tone, the ECB softened its rhetoric, acknowledging that economic growth projections for the eurozone have been revised downward.
Source: Financial Times, Stockwatch Cyprus