ECB Slashes Interest Rates Amid Uncertain Economic Future

The European Central Bank (ECB) cut interest rates again due to slowing inflation and faltering economic growth. Despite the move, the ECB provided little guidance on future policy actions. Investor attention now turns to ECB President Christine Lagarde’s upcoming press conference for further insights.

The European Central Bank slashed interest rates again on Thursday, responding to slowing inflation and wavering economic growth. However, the ECB offered scant clues about future policy, despite investors betting on continued easing in the coming months. The deposit rate was lowered by 25 basis points to 3.50%, a move widely forecasted among experts and market participants.

With the rate cut already expected, investors are now focused on the ECB's next steps, though the central bank maintained its stance of making decisions on a meeting-by-meeting basis, without any pre-commitment. "The Governing Council will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction," the ECB highlighted in its statement.

Attention has shifted to ECB President Christine Lagarde's press conference set for 1245 GMT, where she is anticipated to discuss the rate outlook and the potential influence of expected U.S. Federal Reserve rate reductions on ECB decisions. While some economists anticipate a door to another rate cut in October, others are expecting discussions on the broader economic impact.

(With inputs from agencies.)