Reported 6 months ago
The European Central Bank has lowered its key deposit rate from 4% to 3.75%, marking the first interest rate cut in five years. This move is in response to a surge in inflation following the pandemic. The cut aims to boost inflation and aligns with the ECB's forecast for elevated inflation levels, despite strong domestic pressures such as high wage growth. The decision is viewed in light of the US Federal Reserve's plan to maintain higher rates, potentially weakening the euro and impacting imports for the eurozone.
Source: YAHOO