ANKARA: The European Central Bank (ECB) on Thursday lowered interest rates for the first time in five years, cutting its three key benchmarks by 25 basis points, meeting market forecasts.
The interest rates on the main refinancing operations plus the marginal lending facility and the deposit facility were lowered to 4.25 percent, 4.50 percent, and 3.75 percent respectively, a bank statement said.
“Based on an updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission, it is now appropriate to moderate the degree of monetary policy restriction after nine months of holding rates steady,” it said.
The euro area annual consumer inflation rate rose to 2.6 percent in May, from 2.4 percent in both March and April, according to the latest data from Eurostat.
The bank stressed that policy rates would be kept sufficiently restrictive for as long as necessary to achieve its 2 percent medium-term target.
Source: Philippines News Agency