EZB Cuts Interest Rates to Stimulate Growth

Thursday, 12 September 2024, 07:30

EZB leads the charge with its recent interest rate cut, seeking to counteract declining inflation. This pivotal move aims to boost economic growth and investment.
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EZB Cuts Interest Rates to Stimulate Growth

EZB Cuts Key Interest Rate

The European Central Bank (EZB) has responded to declining inflation by cutting its key deposit rate by 0.25 percentage points to 3.5%. This decision, communicated on September 12 in Frankfurt, is viewed as a crucial step for economic recovery, optimizing conditions for businesses to invest.

Impact on Businesses and Savers

  • Good News for Businesses: Companies can secure cheaper loans.
  • Concerns for Savers: Individuals may face lower returns on savings accounts.

Changes to Main Refinancing Rate

The EZB also introduced a significant adjustment to the main refinancing rate, lowering it by 0.6 percentage points to 3.65%. This measure is intended to reduce volatility in short-term interest rates.

Economic Expectations and Future Outlook

With inflation in the Eurozone decreasing to 2.2%, the EZB's decision aligns with forecasted economic trends. Nonetheless, concerns about core inflation and its implications on purchasing power remain prevalent.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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