12.09.2024. / 16:05
FRANKFURT – The European Central Bank (ECB) has again lowered interest rates as both inflation and economic growth slow down.
PHOTO: ECB
The ECB cut its deposit rate by 25 basis points to 3.5 percent, following a similar cut in June, as inflation is now at the 2 percent target.
Investors’ attention has already turned to ECB decisions in the future, and in particular to the meeting of the US Federal Reserve next week. It is expected that the US central bank will also lower the reference interest rates.
“We do not commit in advance to a certain exchange rate when it comes to interest”ECB President Christine Lagarde said at a press conference.
She stated that the ECB is considering “the entire spectrum of indicators” and that a low inflation rate is expected in September.
Analysts believe that the ECB wants to be completely sure of the inflation forecast before embarking on more aggressive interest rate cuts.
The reference interest rates of the ECB directly affect the Euribor, and thus the cost of borrowing in banks. A doe
Source: www.capital.ba
