SPEU - June ECB Meeting: A Rate Cut But Then What?

2024-06-07 23:25:00 ET

Summary

• As widely expected, the European Central Bank (ECB) cut its key policy rates for the first time in five years.
• The interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility were each lowered by 25 basis points to 4.25%, 4.5%, and 3.75%, respectively.
• The ECB’s decision to ease its policy restrictiveness comes after nine months of holding policy rates steady.

By Seema Shah, Chief Global Strategist

As widely expected, the European Central Bank (ECB) cut its key policy rates for the first time in five years. The interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility were each lowered by 25 basis points to 4.25%, 4.5%, and 3.75%, respectively....

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