European Central Bank has Reduced Rates by 25 bp
- Updated Friday Jun 07 2024
European Central Bank has Reduced Rates by 25 bp
The ECB has jumped ahead of the Fed and cut its bench interest rate by 25 basis points to 3.75%. This has so far had little impact on the markets as analysts are unimpressed by the quantum of the cut.
Many analysts have gone so far to call it a half measure.
ECB has hinted that this surprise rate cut is largely because of a slow-down in inflation or ‘disinflation’ as it has been termed, and there could be more substantive rate cuts in the offing especially following US data and the expected rate cuts to be announced by the Fed in the coming months.
This is the first rate cut by the ECB since 2019.
COVID and the subsequent pandemic related expenditures and disruptions have led to a sustained period of high inflation and rates causing some hardship to small businesses and household budgets.
Share News
Please Login to place a comment
Login Now
-
LATEST
-
POPULAR
