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  5. European Central Bank cuts interest rates to support eurozone economy

European Central Bank cuts interest rates to support eurozone economy

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The European Central Bank has made a further interest rate cut, reducing the main deposit rate to 3.25% from 3.5%. This marks the third rate cut this year, with the aim of stimulating economic growth in the face of a slowdown. Germany, the region's largest economy, is expected to experience minimal growth of 0.1% this year, according to the Organisation for Economic Co-operation and Development (OECD). Inflation in the 20-nation region has also fallen, dropping to 1.7% in September from 2.2% in the previous month, further indicating a recession in Germany and a decrease in inflation across the bloc.

  1. European Central Bank
    1. The incoming information on inflation shows that the disinflationary process is well on track. The inflation outlook is also affected by recent downside surprises in indicators of economic activity.
  2. FR
    Christine Lagarde
    European Central Bank
    1. The latest data is all heading in the same direction, downwards, and points to more sluggish growth.
  3. DE
    Holger Schmieding
    Berenberg bank
    1. The trends in the real economy and inflation support the case for lower rates.
  4. GB
    Joe Nellis
    Cranfield University
    1. With the German economy likely to shrink for its second consecutive year, we can expect the ECB to cut rates by another 0.25% in December – this is a decision policymakers will feel they have to make if they are serious about catalysing growth in the eurozone's largest economy.
    2. Unlike the Bank of England, the ECB has a dual mandate, requiring it to take decisions to foster growth as well as control inflation. ECB policymakers will hope that this cut provides a boost to the German (and wider eurozone) economy, inspiring consumer spending, encouraging investment and ultimately stimulating the economy.

European Central Bank

  1. European Central Bank cuts key rate by quarter point
  2. Eurozone inflation jumps to 2.9% as energy costs rise
  3. ECB keeps rates steady amid eurozone recession fears

sources

  1. 1.The Times
  2. 2.France 24
  3. 3.The Guardian

perspectives

  1. 1.Inflation
  2. 2.European Commission under Ursula von der Leyen
  3. 3.French Economy
  4. 4.German Economy
  5. 5.Central Bank

countries

  1. 1.GermanyDE
  2. 2.SpainES
  3. 3.FranceFR
  4. 4.ItalyIT

organizations

  1. 1.Bank of England
  2. 2.Federal Reserve SystemUS
  3. 3.Berenberg bank
  4. 4.European Central Bank
  5. 5.Principal Asset Management
  6. 6.T. Rowe Price
  7. 7.Cranfield University
  8. 8.Deutsche BankDE
  9. 9.JPMorgan Chase
  10. 10.Organization for Economic Cooperation and Development

persons

  1. 1.Christine LagardeFR
  2. 2.Holger SchmiedingDE
  3. 3.Joe NellisGB
  4. 4.Mark Wall
  5. 5.Matthew Landon
  6. 6.Tomasz WieladekGB

technicals

  1. 1.Eurozone
  2. 2.Eurosystem
European Central Bank cuts interest rates to support eurozone economy