The main interest rate is at 2.5%
The European Central Bank (ECB) has reached a 0.25% reduction in interest rates.
According to the ECB, the Bank’s Board of Directors at its meeting decided to reduce its interest rates by 0.25%. Subsequently, the basic interest rate (acceptance of deposits) is 2.5%. This is the second consecutive reduction in interest rates since the beginning of the year, as the ECB had reduced its interest rates on 5 February by 0.25%.
The ECB’s decision is made amid increased tensions caused by fiscal relaxation in Germany and the trade war that has begun by the US by imposing duties.
It is recalled that the ECB has reduced interest rates five times since June, as inflation is receding and economic growth is overwhelmed.
Today’s ECB decision is based on the new provisions on the satisfactory course of inflation, as it is estimated to fall to 2.3% in 2025, 1.9% in 2026 and 2% in 2027, and the slowdown in Eurozone recovery with GDP increasing by 0.9% for 20% for 20% and 20% for 20%.
According to previous forecasts made by the ECB in December 2024, GDP, after an increase of 0.7% in the previous year, estimated that it would increase by 1.1% in 2025, 1.4% in 2026 and 1.3% in 2027.
