The European Central Bank announced a reduction in interest rates by a quarter of a percentage point to 3.25 percent, compared to 3.50 percent.
Before the decision, several members of the Board of Governors of the European Monetary Agency, which is headquartered in Frankfurt, including German Central Bank President Joachim Nagel and his French counterpart François Villeroy de Gallo, hinted that the European Central Bank would reduce interest rates.
The French Central Bank Governor said that “a decline is very likely” during a meeting European Central Bank Last Thursday, after the first decline in June, and the second in September, adding that “it will not be the last,” referring to a further decline of 0.25 percentage points.
Inflation continued its noticeable slowdown in the euro zone during September, falling to 1.8 percent, below the 2 percent threshold for the first time in more than three years.
The slowdown was recorded in particular in major economies Germany (1.6 percent) andFrance (1.2 percent) andItaly (0.7 percent).
Core inflation, a widely followed indicator that does not include goods and services from the food and energy sectors, also fell to 2.7 percent on an annual basis, according to Eurostat.
The President of the European Central Bank said Christine Lagarde During a hearing in the European Parliament at the end of September, the current price developments “reinforce our confidence that inflation will return to target in due course” and “we will take this into account at our next monetary policy meeting” in October.
