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Market news | ECB cuts key rate as expected by 25 bp to 3.25% (deposit), marginal to 3.65%, base to 3.4%
Today, the Governing Council of the ECB decided to cut the ECB's three key interest rates by 25 basis points. Accordingly, from 23 October 2024, the interest rates on deposit programmes, large refinancing operations and marginal lending programmes will be reduced to 3.25%, 3.40% and 3.65%, respectively. In particular, the decision to reduce interest rates on deposit business is as follows: The rate at which the ECB Council sets monetary policy is based on the inflation forecast, the development of core inflation and the current assessment of the effectiveness of monetary policy. Incoming inflation data show that the deflation process is proceeding according to plan. The inflation forecast has been affected by the recent unexpected slowdown in economic activity. At the same time, financing conditions remain tight. The Council aims to ensure a timely return of inflation to the medium-term target of 2%. www.ecb.europa.eu/press/pr/date/2024/html/ecb.mp241017 ~aa366eaf20.en.html