The ECB reduced the three main interest rates – DW – 10/17/2024

The European Central Bank (ECB) at its Governing Council position in Slovenia on Thursday 17 October lowering the three main interest rates in the euro area by 0.25 percentage points. Therefore, from October 23, the deposit rate will be 3.25%, the main rate – 3.40%, and the marginal rate – 3.65%.

The ECB responded to the slowdown inflation in the euro area. The regulator is cutting interest rates for the third time this year.

The Governing Council is committed to ensuring that inflation returns to the medium term target of 2% in good time. “The ECB will keep rates low enough for as long as necessary to achieve this objective,” the European Central Bank explained.

Inflation is still expected to rise in the coming months before reaching a target over the next year.

The previous time the ECB lowered its key rate was in June

Early June European Central Bank for the first time since 2019 decrease the main rate in the euro area from 4.5% to 4.25% annually. The easing was the first such move in monetary policy since the start of the energy crisis caused by Russia’s war against Ukraine.

Another decline followed on September 12.

Consumer inflation in the euro area was 2.2% in September, while core inflation was 2.8%. At the same time, in Germany in August, the increase in consumer prices reached the lowest level since March 2021 and was only 1.9%, which experts attribute mainly to cheaper fuel. Basic inflation in Germany in September also weakened to 2.8% – this is the lowest figure since February 2022.