The European Central Bank has cut its interest rates for its lending and deposit facilities by 0.25% (25 basis points), lowering the ECB’s deposit interest rate for banks at 3.75%. The interest rte cut comes after a similar move by the Bank of Canada and marks a further move towards an end to the relatively, higher interest rates regimes.
In her press conference, ECB President Christine Lagarde said that geopolitical risks still lie ahead and that the ECB forecasts inflation to remain elevated above the 2% target until the end of 2025. She also added that the Bank has ample room and options for further decisions until then. Throughout the Press Conference she wore a necklace saying “In Charge”.
The Euro has kept its making gains since early April and hovered at around $1.09 during the press conference and end of day.
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