The European Central Bank announced a 25-basis-point interest rate trim taking the deposit facility rate to 2%, down from a mid-2023 high of 4%.
Ahead of the announcement, traders had been pricing in an almost 99% chance of the quarter-point cut according to LSEG data.
The central bank’s decision comes at a critical time for the euro zone economy as businesses and policy makers face increasing uncertainty in the wake of rising geopolitical tensions.
Watch the press conference following the Governing Council meeting hosted by the President and Vice-President of the European Central Bank (ECB)
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Video at Youtube: https://www.youtube.com/watch?v=9z8EzxlOokk