by Piero Cingari
EuroNews
Inflation is on track to hit the medium-term 2% target in 2025. The ECB remains data-dependent, with no pre-commitment to future rate changes.
In a press conference following the European Central Bank’s (ECB) decision to cut interest rates by 25 basis points, President Christine Lagarde hailed the central bank’s progress in tackling inflation, declaring figuratively: “We’re breaking the neck of inflation.”
The deposit facility rate, the rate at which the ECB steers monetary policy, has now fallen to 3.25%, marking the lowest level since May 2023.
Why the ECB decided to cut interest rates
Lagarde highlighted several key factors that drove the ECB’s decision to cut rates in October.