Deposit rate lowered to 3.00% as widely expected
The European Central Bank (ECB) on Thursday lowered its three key interest rates by 25 basis points, aligning with market expectations.
The decision, effective December 18, is based on its updated assessment of the inflation outlook, the bank said in a statement.
The interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will be lowered to 3.00%, 3.15%, and 3.40% respectively.
Noting that the disinflation process is well on track, the bank said headline inflation is projected to average 2.4% this year, 2.1% next year, 1.9% in 2026, and 2.1% in 2027
According to a flash estimate, headline inflation rose to 2.3% in the euro area as of November, up from 2% in October.
"For inflation excluding energy and food, staff project an average of 2.9% in 2024, 2.3% in 2025 and 1.9% in both 2026 and 2027," said the bank.
Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, was stable at 2.7% in November.
Gross domestic product (GDP) in the eurozone rose 0.4% in the third quarter of 2024, accelerating from 0.2% in the second quarter.
On an annual basis, the eurozone economy grew 0.9% in July-September, the largest leap since 2023, and up from 0.6% in April-June.
