by AFP
Jordan Times
FRANKFURT, Germany — The European Central Bank (ECB) made its first interest rate cut since 2019 Thursday, reducing borrowing costs from record highs, but gave few clues about its next move while warning of continuing inflation pressures.
The key deposit rate was lowered a quarter point to 3.75 per cent, after the central bank had kept borrowing costs on hold since October.
After an unprecedented streak of eurozone rate hikes beginning in mid-2022 to tame runaway energy and food costs, inflation has been slowly coming down towards the ECB’s two-per cent target.
Thursday’s cut, the first since September 2019, will provide a much-needed boost for the beleaguered eurozone economy.