On Thursday, 6th June 2024, the European Central Bank announced a reduction in interest rates, a move that was widely expected, despite persistent inflationary pressures in the eurozone, which comprises 20 nations.
The central bank’s primary rate has been lowered to 3.75%, a decrease from the historic high of 4% where it has remained since September 2023.
The money markets had completely anticipated the 0.25% reduction at the June meeting. This marks the first decrease since September 2019, when the deposit rate was below zero.