The European Central Bank (ECB) cut interest rates yesterday for the second time in three months, reducing the deposit rate by a quarter of a percentage point to 3.5% from 3.75%. This follows a June rate cut, the first since 2019, as the ECB gradually rolls back the aggressive policies it implemented to combat high inflation in the eurozone.
With inflation slowing, the ECB faces increasing pressure to support the region’s sluggish economy, which has seen weak growth due to poor household spending and high borrowing costs.
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