ECB confirms 25 basis points interest rate cut
Press Hub UCapital
Share:
The European Central Bank, during its meeting on Thursday, March 6th, confirmed analysts' forecasts by lowering the deposit rate from 2.75% to 2.50%, the refinancing rate from 2.90% to 2.65%, and the marginal lending rate from 3.15% to 2.90%.
In the statement released by the ECB shortly after the meeting, it was mentioned that monetary policy is significantly shifting toward less binding forms, with the rate cut making the cost of new loans less expensive for households and businesses.
However, domestic inflation remains high, with projections for March—affected by rising energy costs—pointing to an average annual inflation rate of 2.3% in 2025, 1.9% in 2026, and 2% in 2027. Core inflation, on the other hand, is expected to fall to 2.2% in 2025, 2% in 2026, and 1.9% in 2027. Nevertheless, the ECB assured that the disinflation process is already underway.
Growth prospects, meanwhile, are strongly influenced by the global trade environment. Analysts predict GDP growth of 0.9% in 2025, 1.2% in 2026, and 1.3% in 2027.
In the statement released by the ECB shortly after the meeting, it was mentioned that monetary policy is significantly shifting toward less binding forms, with the rate cut making the cost of new loans less expensive for households and businesses.
However, domestic inflation remains high, with projections for March—affected by rising energy costs—pointing to an average annual inflation rate of 2.3% in 2025, 1.9% in 2026, and 2% in 2027. Core inflation, on the other hand, is expected to fall to 2.2% in 2025, 2% in 2026, and 1.9% in 2027. Nevertheless, the ECB assured that the disinflation process is already underway.
Growth prospects, meanwhile, are strongly influenced by the global trade environment. Analysts predict GDP growth of 0.9% in 2025, 1.2% in 2026, and 1.3% in 2027.