URGENT: ECB cuts interest rates

The European Central Bank (ECB) decided on Thursday to lower its key interest rates by 25 basis points, effective April 23, 2025, according to a statement from the bank.

The decision affects the deposit facility rate, the main refinancing operations rate, and the marginal lending facility rate, which will now stand at 2.25 per cent, 2.40 per cent, and 2.65 per cent, respectively.

The ECB’s move follows its updated assessment of the inflation outlook, which shows a continued decline in both headline and core inflation.

The disinflation process is progressing as expected, with services inflation also easing in recent months.

Despite the euro area economy showing resilience to global shocks, the ECB highlighted concerns over rising trade tensions, which have worsened growth prospects and increased uncertainty.

The Governing Council remains committed to bringing inflation back to its 2 per cent medium-term target, stressing that its decisions will continue to be data-driven and responsive to evolving economic conditions.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser