From BBC: 2024-06-06 10:40:19

The EU has cut its lending rate to 3.75% after the ECB announced a decrease from 4% due to improved inflation outlook. ECB President Christine Lagarde noted inflation may remain above the 2% target into 2025. The rate cut aims to stimulate economic activity in the eurozone amid global cuts.

The decision by the EU follows Canada’s rate cut to 4.75% and signals a broader trend towards easing global interest rates. Sweden and Switzerland have also trimmed rates. While there are potential risks ahead, such as geopolitical tensions and climate impacts, the ECB seems confident in the economic outlook going forward.

The Bank of England, facing an upcoming election, may find its decision to cut rates influenced by political factors. The UK inflation rate has fallen to 2.3%, prompting speculation about potential rate cuts. The US Federal Reserve is also expected to lower rates, with higher inflation rates posing a challenge.



Read more at BBC: European Central Bank cuts interest rate to 3.75%