ECB Slashes Benchmark Rates to 3.25% as European Inflation Sinks Below 2% Target
The European Central Bank has lowered borrowing costs by 25 basis points in Frankfurt today, marking its third rate cut this year. Policymakers noted that disinflation is well on track across the 20-member currency union, with headline CPI dropping to 1.7%, though sluggish regional manufacturing across Germany and France remains a persistent drag on continental growth.
- ▪ECB trims deposit facility rate by 25 bps to 3.25% amidst easing price pressures.
- ▪Eurozone headline inflation dropped to 1.7% in September, undershooting the 2% central objective.
- ▪Lagarde signals data-dependent approach as German manufacturing index signals ongoing contraction.