The European Central Bank (ECB) has announced a 25 basis point cut to its key deposit rate, bringing it down to 3.25%. This marks the **third rate reduction** this year and the first consecutive cuts in 13 years, reflecting a shift in focus from controlling inflation to supporting a weakening economy.
The decision follows recent inflation data showing a drop to 1.7% in September, below the ECB’s target of 2%. ECB President Christine Lagarde indicated that while inflation is now well under control, the central bank remains committed to a data-driven approach for future monetary policy decisions.
Analysts expect further cuts in the upcoming months, with some predicting a total of **four additional reductions** by March 2025 to bolster economic growth amid stagnation in the eurozone.
