ECB Cuts Rates Again As Eurozone Hit By Economic, Political Woes

Mohammad Ali (@ChaudhryMAli88) Published December 12, 2024 | 07:05 PM

The European Central Bank cut interest rates again Thursday, citing a worsening growth outlook and slowing inflation, with political turmoil in the eurozone adding to the troubled picture

Frankfurt, (UrduPoint / Pakistan Point News - 12th Dec, 2024) The European Central Bank cut interest rates again Thursday, citing a worsening growth outlook and slowing inflation, with political turmoil in the eurozone adding to the troubled picture.

The central bank for the 20 countries that use the euro reduced its key deposit rate a quarter point to three percent, as widely expected.

It was the ECB's third cut in a row and fourth since June, when it kicked off its current easing cycle.

After hiking borrowing costs from mid-2022 to combat runaway energy and food costs, policymakers have turned their attention to lowering rates as inflation eases and the eurozone economic outlook darkens.

Worse-than-expected data, as well as the Swiss central bank making an unexpectedly large rate reduction earlier Thursday, had fuelled speculation the ECB could deliver a hefty, half-percentage-point cut for the first time in the easing cycle.

But rate-setters opted to continue cutting at the same pace, with a quarter-point reduction, as inflation remains stubborn, having rebounded back above the ECB's two-percent target in November.