The European Central Bank (ECB) has cut three of its interest rate categories by 25 basis points.
In a press statement, the ECB’s Governing Council announcing the reduction of the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility to 2.25%, 2.40% and 2.65% respectively, effective April 23. This is the seventh consecutive rate cut for the ECB, which noted that “the disinflation process is well on track” but also warned about challenges ahead.
“The euro area economy has been building up some resilience against global shocks, but the outlook for growth has deteriorated owing to rising trade tensions,” said the ECB’s statement. “Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions. These factors may further weigh on the economic outlook for the euro area.”
