ECB Cuts Interest Rates Again as Eurozone Inflation Slows

Published On Oct 17, 2024, 8:19 AM

The European Central Bank (ECB) has cut interest rates for the third time in four months, lowering the key rate to 3.25% as inflation in the eurozone has fallen to 1.7%, below the ECB's target of 2%. This marks the first instance of consecutive rate cuts since 2011. ECB policymakers are responding to a combination of easing inflation and weak economic growth, although they note risks of lower economic momentum. While rate cuts have been seen as a necessary response to economic conditions, there is caution about potentially reigniting inflation in the future.

Read full article

Stock Forecasts

EWUView EWU chart on TradingView

Positive

The decision to cut rates could lead to improved economic conditions as borrowing becomes cheaper, potentially boosting consumer spending and investment. This is constructive for businesses exposed to the eurozone economy.

Related News

UK economy returned to growth in August

Oct 11, 2024, 2:08 AM

The economy grew by 0.2% but there is a warning that the "broader picture" is one of "slowing growth".

EWU

Irish budget: Stark difference in UK and Ireland's budgets

Oct 5, 2024, 2:12 AM

With Ireland announcing a "hopeful" budget, the contrast with the looming UK budget is stark.

EIRL
EWU

UK economic growth 'robust', OECD thank tank says

Sep 25, 2024, 5:57 AM

A think tank says it expects UK economic growth grow by 1.1%, the same rate as Canada and France.

EWU