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The European Central Bank decided on Thursday to cut interest rates by a quarter of a percentage point to 0.25%, marking its second cut to the deposit rate this year..
The European Central Bank’s key interest rate is now 3.5%, down from 3.75%.
The widely expected move comes after a period of slow economic growth in the eurozone and slowing inflation, which fell towards the central bank’s 2% target in August..
Economists are divided over whether ECB policymakers will look to pause when they meet again on October 17, as they did in July, before cutting interest rates by another quarter-point on December 12..
The ECB meeting comes just days before the Federal Reserve is set to begin its own rate-cutting cycle..
