Reversal signs? ECB cuts rate for 1st time in 5 years

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FRANKFURT: The European Central Bank (ECB) cut its key interest rate on Thursday by a quarter-point, first time since 2019, moving ahead of the US Federal Reserve as central banks around the world lean toward lowering borrowing costs – a shift with far-reaching consequences for home buyers, savers and investors.

ECB

cut its benchmark rate to 3.75% from a record high of 4% at a meeting of the bank’s 26-member rate-setting council in Frankfurt.
ECB president Christine Lagarde said inflation had eased enough for central bank to start lowering rates. agencies