On March 6, 2025, the European Central Bank (ECB) announced a reduction in its benchmark deposit rate to 2.5%, a strategic effort to alleviate financial strain on consumers and businesses amid sluggish economic growth in the eurozone. This decision follows a period of high inflation, which peaked above 10% in 2022, prompting the ECB to raise rates to a historic high of 4%. However, as inflation has eased, the ECB has gradually decreased rates since June 2024 to support economic recovery.
The European Central Bank (ECB) announced it is lowering its benchmark deposit rate to 2.5%, aiming to ease financial pressure on eurozone consumers and businesses.
As the ECB addresses sluggish economic growth, the latest rate cuts also mark a response to inflation levels that exceeded 10% in 2022, reflecting a gradual approach.
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