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The European Central Bank has reduced its reference interest rate by a quarter at 2.5 percent, due to the signs that inflation returns to its 2 percent goal in the bad recovery of the eurozone.
A widely expected move is the sixth reduction in EcbDeposit rate since the central bank began to reduce borrowing costs last June, when it was a record 4 percent to combat inflation increase.
The rate is now the lowest since February 2023.
Merchants expect one or two further decrease in a quarter of points this year, according to levels that include Swaps markets.
Inflation It fell from the top of 10.6 percent in October 2022. At 2.4 percent in February.
Prospects for Eurozone economy They could also influence the moves of Friedrich Merz, a German chancellor who is waiting, to free up hundreds of billions of euros in borrowing to increase the cost of defense and improve his country’s infrastructure.
Some analysts predict that plans could double the expected growth of Germany next year at 2 percent.
This is a development story
