ECB Cuts Rates: Navigating Eurozone's Economic Waters

The European Central Bank (ECB) has reduced interest rates for the third time this year, taking its deposit rate to 3.25%. This move reflects concerns over slow economic growth and easing consumer prices. However, the ECB remains non-committal regarding future rate cuts despite market expectations.

The European Central Bank (ECB) on Thursday cut interest rates for the third time this year, lowering its deposit rate by 25 basis points to 3.25%. This decision comes amid sluggish economic growth, a softening labor market, and easing consumer price pressures.

The move was widely anticipated, following a run-up to the meeting marked by weak growth data and benign inflation figures. The ECB acknowledged that inflation, now below 2%, could reach its target faster than previously expected. Markets anticipate further rate cuts, though the ECB hasn't provided future guidance.

The decision has sparked a debate within the ECB, with some arguing for quick rate cuts to stimulate growth while others caution against it due to potential inflationary risks. ECB President Christine Lagarde is expected to offer few clues about future policy shifts during her scheduled news conference.

(With inputs from agencies.)