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Posted March 6, 2025 at 10:45 am
The Governing Council lowered its three key interest rates by 25 basis points, bringing the deposit facility rate to 2.50%, the main refinancing rate to 2.65%, and the marginal lending rate to 2.90%.
“Monetary policy is becoming meaningfully less restrictive, as the interest rate cuts are making new borrowing less expensive for firms and households and loan growth is picking up,” the ECB said in a statement.
Inflation projections show a gradual convergence towards the 2% target, with expectations of 2.1% in 2025, 1.9% in 2026, and 2% in 2027. Core inflation is also expected to approach the 2% target.
The Governing Council said it will maintain a data-dependent approach and be ready to adjust its instruments to ensure inflation stabilizes at the 2% medium-term target without committing to a specific rate path.
European markets declined with the STOXX 50 and the STOXX 600 falling by 0.8%, after the European Central Bank delivered the interest rate cut.
Investors can monitor the Xtrackers MSCI Europe Hedged Equity ETF and the SPDR Portfolio Europe ETF to gauge the U.S. market reaction to the cuts.Â
The SPDR S&P 500 ETF Trust, tracking the S&P 500, was down 1.11% at $576.60 and the Invesco QQQ Trust, tracking the Nasdaq 100 index, was down 1.47% at $494.64 in Thursday’s premarket session.Â
The Whisper Index uncovers stocks on the verge of major moves—before the mainstream catches on. It’s how we spotted Insmed, Sprouts, and Uber before their 20%+ gains. This week’s new picks drop Friday—will you see them first or hear about them later?
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Originally Posted March 6, 2025 – European Central Bank Cuts Interest Rates Marking Sixth Cut In 9 Months
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