Eurostat inflation data releases

ECB Makes Third Rate Cut This Year as Inflation Falls to 1.7%

Oct 17, 2024, 12:17 PM

The European Central Bank (ECB) has cut its key interest rates by 25 basis points, marking the third rate reduction this year and the second consecutive cut, with the changes taking effect from 23 October 2024. The deposit facility rate was lowered from 3.5% to 3.25%, the main refinancing rate from 3.65% to 3.4%, and the marginal lending facility rate from 3.9% to 3.65%. The ECB stated that the disinflationary process is "well on track" and noted that inflation in the Eurozone has fallen below its 2% target for the first time since 2021, with annual inflation dropping to 1.7% in September from 2.2% in August. The central bank cited the worsening economic outlook and weakening growth as reasons for the rate cuts, aiming to support the stuttering Eurozone economy, which has been impacted by high interest rates that have hurt investment and economic growth.