Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

The European Central Bank lowers the interest rate – as expected

» Updated: 13 September 2024, 21:15

» Published: 12 September 2024

The European Central Bank lowers the interest rate – as expected
Photo: Arne Dedert AP/TT

The European Central Bank (ECB) is lowering its key interest rate, i.e. the deposit rate, by 0.25 percentage points to 3.50 percent.

The ECB is motivating the rate cut by saying it is another step towards a reduced tightening of monetary policy.

In June, the ECB lowered the interest rate for the first time since 2019, to 3.75 percent, and then left it unchanged in July.

The inflation forecast remains unchanged, but the figure for core inflation is slightly higher for this year and next year. The ECB refers to a stronger upward price pressure than expected in the service sector.

The ECB's economists are also lowering the GDP forecast for the eurozone to 0.8 percent growth this year, down from 0.9 percent. For 2025, the GDP forecast is lowered to 1.3 percent from 1.4 percent. The ECB is also lowering the forecast for 2026 to 1.5 percent from 1.6 percent.

The stock market and the exchange rate of the krona against the euro are virtually unchanged after the announcement.

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

More news

Large Debt Relief Package in China Fails to Impress
3 MIN READ

Large Debt Relief Package in China Fails to Impress

Households bought less in September
1 MIN READ

Households bought less in September

The Stockholm Stock Exchange Continues to Decline
1 MIN READ

The Stockholm Stock Exchange Continues to Decline

Significant Price Increase on the Housing Market
2 MIN READ

Significant Price Increase on the Housing Market

Mixed on Asian Exchanges
1 MIN READ

Mixed on Asian Exchanges

Christmas Sales Expected to Break Records
2 MIN READ

Christmas Sales Expected to Break Records

Still Happy Faces on Wall Street
1 MIN READ

Still Happy Faces on Wall Street

Trump in focus after expected Fed decision
2 MIN READ

Trump in focus after expected Fed decision

Divided on softer amortization requirements
2 MIN READ

Divided on softer amortization requirements

How much the banks lower the mortgage rate
1 MIN READ

How much the banks lower the mortgage rate

Higher costs hit SAS owner
1 MIN READ

Higher costs hit SAS owner

The Union Steps Up the Tesla Strike
1 MIN READ

The Union Steps Up the Tesla Strike

New French obstacles for Airbnb
1 MIN READ

New French obstacles for Airbnb

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late