European Central Bank Reduces Key Interest Rates by 0.25%

The ECB's sixth rate cut since last summer aims to curb inflation and support the Eurozone's economy.

The European Central Bank (ECB) has lowered all three of its key interest rates by 0.25 percentage points, bringing the deposit rate to 2.5%.
This marks the sixth rate reduction since the ECB began its easing cycle in mid-2024, following earlier rate hikes to combat high inflation.
Eurozone inflation continues to decline, with February's rate at 2.4%, down from 2.5% in January, though significant national variations persist.
The decision is expected to further reduce savings account interest rates, with February seeing the steepest drop in German daily savings rates since 2012.
Economists anticipate additional ECB rate cuts in the coming months, as the bank approaches its inflation target of 2.0%.