The European Central Bank proceeded, as expected, to cut interest rates by 25 points (the third reduction this year).

Specifically, the deposit acceptance rate was reduced to 3.25% from 3.5%, the main refinancing operations rate was reduced to 3.40%, the marginal financing facility rate was reduced to 3.65%, with effect from October 23, 2024 .

According to the ECB Board, inflation is expected to strengthen in the coming months before returning to a deceleration trajectory over time. At the same time, it is reported that domestic inflation remains high, as wages continue to rise at an increased rate. However, labor cost pressures are easing, and earnings are partially offsetting their impact on inflation.

Markets are predicting that ECB chief Christine Lagarde will make another rate cut in December, a trend that is expected to continue into 2025.

And this despite the fact that economists predict that Eurozone inflation to remain above 2% target set by the European Central Bank. In particular, the German economic institute ifo predicts that inflation in the eurozone will reach 2.6% in the year.

The ECB has made it clear that monetary policy decisions will be taken at each meeting on the basis of available data, wanting to have freedom of movement depending on the path of inflation towards the medium-term target of 2% while taking into account the course of the economy.