The European Central Bank (ECB) reduced interest rates for the fourth time this year on Thursday, lowering the deposit rate from 3.25% to 3.0%, down from a record 4.0% in June, Reuters reports.
This move comes as inflation approaches the ECB’s target and the eurozone economy remains weak. The ECB also indicated the possibility of further rate cuts by removing references to maintaining “sufficiently restrictive” rates. The ECB emphasized that while financing conditions are easing, they remain tight due to the lingering effects of previous rate hikes.
Additionally, the ECB reduced lending rates for banks and announced the end of bond purchases under its Pandemic Emergency Purchase Programme this month, marking a shift in its support measures for the banking system.
