ECB Cuts Rates Again, Signaling Slowdown in Eurozone

The European Central Bank (ECB) has made its eighth interest rate cut since the start of 2023, lowering the main deposit rate to 2% from a high of 4% earlier this year. This move, anticipated by traders due to consistent data suggesting declining inflation, indicates a cautious approach as economic growth remains sluggish in the Eurozone. The ECB attributes the decline to both cooling inflation and continued weak economic activity, with only modest GDP growth reported for Q1 2025. 2% inflation is well below their target but has not yet translated into noticeable economic expansion.