ECB cuts interest rates by 25 basis points as expected

Investing.com - The European Central slashed rates by 25 basis points as expected on Thursday, as policymakers look to address flagging economic growth in the Eurozone currency area despite concerns over lingering inflation.

Despite noting that a "disinflation process" is "well on track" and the impact from an era of restrictive monetary policy is gradually fading, the ECB said in a statement that the Eurozone economy is "still facing headwinds".

The ECB slashed borrowing costs four times in 2024, due in part to worries over tepid activity in the Eurozone and signs that a generational surge in inflation may have been cooled by a period of elevated rates.

(This is a developing story. Please check back later for updates.)

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