All news
The European Central Bank cut its base rate to 3.4%
According to the ECB, the process of easing inflation in the euro area is on track. The European Central Bank noted that “the inflation outlook is affected by the recent unexpected slowdown in economic activity, while financing conditions remain tight.” The ECB currently forecasts annual inflation in the euro area to be 2.5% in 2024, 2.2% in 2025 and 1.9% in 2026.
Policymakers expect inflation in euro area countries to rise in the coming months before falling to the 2% target in 2025. “Domestic inflation remains high as wages continue to grow strongly. At the same time, pressures on labour costs are expected to continue to ease gradually,” the ECB said.
The European Central Bank (ECB) began its interest rate cutting cycle in June last year, cutting its benchmark interest rate from 4.5% to 4.25%. The ECB cut the rate to 3.65% at its September meeting.