European Central Bank Cuts Interest Rate With 25bps to 2%, Will US FED Follow?

The European Central Bank (ECB) has opted for interest rate cuts across the board as inflation indicators decelerate. Across the Atlantic, optimism is growing that the US FED will follow its European counterpart to slash interest rates.

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European Central Bank Slashes Interest Rates By 25bps

The Governing Council of the ECB has confirmed three key interest rate cuts by 25 basis points to stimulate the regional economy. According to a press release, the ECB notes that the decision to cut interest rates follows an updated assessment of available inflation data for the EU.

Per the data, the EU’s inflation hovers around the 2% mark in the short term, while long-term estimates point to similar conservative numbers. Furthermore, the ECB notes that analysts are forecasting a spike in GDP projections despite ongoing trade uncertainties.

Going forward, the ECB’s reduction of interest rates by 25 basis points will affect facilities relating to deposits, main refinancing operations, and marginal lending facilities.

THIS IS A BREAKING STORY AND WILL BE UPDATED AS FACTS EMERGE

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