ECB Lowers Key Interest Rates
Significant Decision Announced
Rates Reduced by 0.25%
In a move that will have a significant impact on the eurozone economy, the Governing Council of the European Central Bank (ECB) has decided to lower its three key interest rates by 0.25%.
The decision was announced by the ECB early this afternoon, and it marks the first time that the central bank has cut interest rates since 2019.
The ECB's decision comes despite the fact that inflation in the eurozone is still well above the bank's target of 2%. However, the central bank has said that it believes that the risks to the eurozone economy are now more balanced, and that it is therefore appropriate to begin to loosen monetary policy.
The ECB's decision is likely to be welcomed by businesses and consumers in the eurozone, as it will make it cheaper for them to borrow money. However, the decision could also lead to a weakening of the euro, which could make it more expensive for eurozone countries to import goods and services.
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