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.
Stock Forecasts
EWU
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".
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.
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.