EUROPEAN CENTRAL BANK CUTS INTEREST RATE TO 3.25%- Inflation in the eurozone falls below its 2% target.
The European Central Bank cut its interest rate to 3.25% after inflation in the eurozone fell below its 2% target.
ECB policymakers were under pressure to reduce the deposit rate after figures out earlier on Thursday showed annual prices growth in the single-currency bloc had eased in September to 1.7%, down from 2.2% the previous month.
The cut is the ECB’s third of the year, putting it two ahead of the Bank of England, which is widely forecast to cut the cost of borrowing in the UK by 0.25 percentage points from the current level of 5% when its monetary policy committee meets again next month.
The ECB said the reduction in interest rates was based on “an updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission”.
