The European Central Bank cut interest rates for the third time in four months as eurozone inflation fell to 1.7%, below the target for the first time in three years.
Policymakers focused on a careful balance between rate cuts to stimulate the economy and the risk of reigniting inflation, emphasizing a measured approach amidst mixed economic indicators.
Analysts noted that the recent U.S. Federal Reserve rate cut sets a precedent, raising expectations for aggressive rate cuts in Europe as inflation concerns ease.
The rapid succession of rate cuts by the E.C.B. reflects an unexpected shift in economic conditions, signaling a responsive rather than a reactive monetary policy at play.
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