Christine Lagarde, president of the ECB, at a rates decision news conference in Frankfurt, Germany, on December 14, 2023. Photographer: Alex Kraus/Bloomberg.
Today, the European Central Bank (ECB) delivered the interest rate reduction it's been flagging for months—moving away from a record high—but stopped short of indicating that more may follow.
Officials led by President Christine Lagarde lowered the key deposit rate by a quarter point, to 3.75 percent, on Thursday, as expected. Having held it at 4 percent for nine months, they said the inflation outlook has improved "markedly," though they'll "keep policy rates sufficiently restrictive for as long as necessary" after also raising projections for prices.
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