European Central Bank, seeing no signs of recession, cuts interest rates again
The European Central Bank, which sets interest rates for the 20 countries that use the euro currency, is not expecting the bloc to fall into recession as it cut borrowing costs once again after figures showed inflation across the bloc falling to its lowest level in more than three years and economic growth waning
LONDON (AP) — The European Central Bank, which sets interest rates for the 20 countries that use the euro currency, does not expect the bloc to slide into recession as it cut borrowing costs once again Thursday in the wake of recent data showing inflation across the bloc falling to its lowest level in more than three years, and economic growth waning.
The bank’s rate-setting council lowered its benchmark rate from 3.5% to 3.25% — its third reduction since June — at a meeting in Llubljana, Slovenia, rather than its usual Frankfurt, Germany, headquarters, and said the "disinflationary process is well on track.”
According to revised figures on Thursday, inflation across the 20-country eurozone, sank to 1.7% in September, the first time in three years that it has been below the ECB’s target rate of 2%.
In a statement accompanying the decision, the ECB predicted an inflation pick-up in the coming months, before a return to its target in the course of next year.
