SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

ECB lowers the interest rate – for the first time since 2019

The European Central Bank (ECB) takes the back of the Riksbank and lowers its interest rates by 0.25 percentage points. At the same time, they raise the inflation forecast to 2025.

» Updated: 16 July 2024, 14:58

» Published: 06 June 2024

ECB lowers the interest rate – for the first time since 2019
Photo: Michael Probst/AP/TT

European Central Bank (ECB) backs Sweden's central bank, Riksbanken, and lowers its interest rates by 0.25 percentage points.

At the same time, they raise their inflation forecast to 2025.

The decision means that the so-called deposit rate lands at 3.75 percent.

In conjunction with the interest rate decision, the ECB updated its forecasts. They now believe in a slightly higher inflation in 2024 and 2025 compared to earlier calculations. But it's nothing to sleep over, according to SEB economist Marcus Widén.

The interest rate decision marks the first time since 2019 that the ECB has chosen to lower the rate and the first time ever that it has gone ahead of the US central bank in starting a monetary policy easing cycle.

She emphasizes that the ECB "has not made up its mind in advance" regarding future interest rate decisions and that monetary policy will remain restrictive "as long as it is needed" to keep inflation in check.

Despite the ECB's cautious tone, Marcus Widén believes that this will be the start of a series of rate cuts, albeit at a slow pace.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Crisis Expert Becomes Chairman of Northvolt One
1 MIN READ

Crisis Expert Becomes Chairman of Northvolt One

"Minecraft" takes a place in the amusement park
2 MIN READ

"Minecraft" takes a place in the amusement park

He becomes the new chairman of the Building Workers' Union
1 MIN READ

He becomes the new chairman of the Building Workers' Union

Norway opens up for tourist tax
2 MIN READ

Norway opens up for tourist tax

Danish weight loss success enters China
1 MIN READ

Danish weight loss success enters China

Minister pleased with authorities "stepping up"
1 MIN READ

Minister pleased with authorities "stepping up"

Enhanced downturn on the Stockholm Stock Exchange
2 MIN READ

Enhanced downturn on the Stockholm Stock Exchange

Cautious Consumers - a Challenge for Synsam
1 MIN READ

Cautious Consumers - a Challenge for Synsam

Svantesson: The Consumer Has a Great Responsibility
2 MIN READ

Svantesson: The Consumer Has a Great Responsibility

Fake ID apps spread among young people: "Well-made"
2 MIN READ

Fake ID apps spread among young people: "Well-made"

Mostly Upwards on Asian Exchanges
1 MIN READ

Mostly Upwards on Asian Exchanges

Media: Battle over Trump's Finance Minister Post
2 MIN READ

Media: Battle over Trump's Finance Minister Post

Google may be forced to sell Chrome
2 MIN READ

Google may be forced to sell Chrome

Tesla wins on the stock exchange in the USA
1 MIN READ

Tesla wins on the stock exchange in the USA

Internal Criticism: "Trying to Become the Fifth Bourgeois Party"
2 MIN READ

Internal Criticism: "Trying to Become the Fifth Bourgeois Party"

VW: In close contact with Northvolt
1 MIN READ

VW: In close contact with Northvolt

Insider conspiracy investigated – decision on prosecution imminent
2 MIN READ

Insider conspiracy investigated – decision on prosecution imminent

Viaplay's largest owner heading for the stock exchange
1 MIN READ

Viaplay's largest owner heading for the stock exchange

The Gold Price is Expected to Rise Even More
1 MIN READ

The Gold Price is Expected to Rise Even More

Ericsson CEO open to relocating headquarters to the USA
1 MIN READ

Ericsson CEO open to relocating headquarters to the USA