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ECB cuts interest rates

Published 06/06/2024, 14:00
© Reuters ECB cuts interest rates
EUR/USD
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Proactive Investors - The European Central Bank has delivered a small cut in interest rates at its June meeting, as expected.

The main refinancing rate was trimmed by a quarter of a percent to 4.25%, with the marginal lending facility and deposit facility rates also cut by the same 25 basis points.

Financial markets and economists had been expecting the move, with ECB president Christine Lagarde and other officials pretty strong in their suggestions in recent weeks that a 25bps cut would be made at this month's meeting.

Yesterday the Bank of Canada followed recent moves by the Swiss National Bank and Sweden's Riksbank in making the first interest rate cuts since the pandemic.

Economist Francesco Pesole at ING says the ECB had "virtually pre-announced" that a 25 basis point rate cut will be made at today's meeting, meaning attention will be on communication from Lagarde.

Read more on Proactive Investors UK

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