The European Central Bank has announced 25 point interest rates on Thursday since the Central Bank began to relax monetary policy in June last year.
With this reduction, an important rate of ECB deposit facilities is 2.75 %. The market was set with a probability of 90 % or more of 25 cuts prior to the announcement.
In recent months, ECB has been working on re -acceleration in the euro sphere and the slowdown in the region’s economic growth. A few months ago, it fell below the 2 % ECB goal, and rose to 2.4 % for three consecutive months for three consecutive months. A new pickup for inflation was expected because the basic effects of reduced energy prices were lost.
The spare data released on Thursday was a flat line in the fourth quarter of 2024, but the Economist voted by Reuters has expanded by 0.4 % in three months until the end of September. He indicated that he had expected 0.1 % growth.
Following the announcement, ECB’s Christine Lagarde said that the Euro economy would “be weak in the short term.”
The State US Federal Reserve did not change the US Federal Reserve on Wednesday in accordance with expectations. The market is overall pricing overall, with less interest rates from Fed this year, less interest rate reduction from Fed.
Talking to CNBC’s Silvia Amaro, Ben Emons, the founder of Fed Watch Advisors, stated that ECB had room to reduce interest rates compared to Fed.
