 The European Central Bank headquarters. (Photo: AFP/VNA) |
This marks the third time in five years that the ECB has decided to cut interest rates. In 2022, it launched an aggressive rate-hike campaign to stem the sharpest price increase in four decades.
Prior to the ECB meeting, Bank of France Governor Francois Villeroy de Galhau said that there was a strong possibility of another rate cut, while noting that this would not be the last.
The ECB's focus is now on tackling weaker economic growth in the 20-country eurozone, which is expected to slow to 0.2% in the third quarter and 0.8%forthe whole of 2024, according to the ECB's own forecasts published last month.