ECB President Christine Lagarde. (Photo: Reuters)

The ECB cut the deposit facility rate to 2.25%, the main refinancing operations rate to 2.4%, and the marginal lending facility rate to 2.65%.

“The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. In particular, the decision to lower the deposit facility rate – the rate through which the Governing Council steers the monetary policy stance – is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission,” ECB President Christine Lagarde said.

The rate cut comes as the ECB seeks to revive growth in the region, which continues to face headwinds from recent health and energy crises, as well as ongoing trade tensions with the US.