ECB lowers interest rates to 2.75% amid stagnant growth and sticky inflation

Lowest rate since March 2023

The European Central Bank has cut interest rates by 25 basis points to 2.75% as it seeks to bolster growth and fight persistent inflation in the eurozone area, which in December rose to 2.4% year-on-year.

In its monetary policy decision today (30 January), the Governing Council noted that while inflation will eventually fall to the 2% target on a sustained basis, domestic inflation remains high because of continuing wage and price pressures in certain sectors, which are "still adjusting to the past inflation surge with a substantial delay". However, the ECB noted: "Wage growth is moderating as expected, and profits are partially buffering the impact on inflation." Trump lambasts the Fed as it leaves interest rates unchanged The latest interest rate cut from the central bank cam...