Official ECB announcements and press releases

ECB Announces Fourth Interest Rate Cut of 25 Basis Points to 3%, Markets Anticipate 100 Basis Points of Further Reductions

Dec 13, 2024, 07:16 AM

The European Central Bank (ECB) has announced its fourth interest rate cut of the year, reducing key rates by 25 basis points, including the deposit rate from 3.25% to 3%. This marks the ECB’s third consecutive reduction as it aims to stimulate lending, consumer spending, and business investment amid growing economic uncertainty. ECB President Christine Lagarde and other officials, including Philip Lane and François Villeroy de Galhau, have indicated that further cuts may be on the horizon, with markets anticipating an additional 100 basis points of reductions in the coming year. The ECB's current deposit rate now stands at 3%, reflecting a broader strategy to navigate tepid economic growth and inflationary pressures, which officials believe are stabilizing towards the target of 2%.