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ECB: Cut interest rates for the first time since 2019

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The ECB cut its key interest rate by 25 basis points to 3.75%

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<p>The long-awaited reduction in interest rates, for the first time since 2019, the European Central Bank (ECB) announced. And this despite the inflationary pressures that are maintained in the 20 countries of the euro, although inflation has fallen from over 10% at the end of 2022, to just over 2% in recent months.</p>
<p>The The ECB cut its key interest rate by 25 basis points to 3.75% and its key refinancing rate to 4.25% from 4.5%, marking the start of their downward cycle.</p>
<p>It is recalled that the key interest rate remained at the level of 4% from September 2023.</p>
<p>As for the ECB's next moves the markets have discounted another reduction within the year, while based on a recent Reuters poll economists they reportedly foresee two more cuts. It is noted that at the beginning of the year the estimates were for 5 interest rate reductions by the ECB in the current year. In any case, analysts estimate that persistently high inflation is likely to limit the number of future reductions.</p>
<p>The Bank of Canada was the first among the G7 countries to cut interest rates (yesterday), while the central banks of Sweden and Switzerland cut their interest rates a few weeks ago.</p>
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<div class=Source: www.kathimerini.com.cy

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