On January 30, 2025, the European Central Bank (ECB) announced a reduction in borrowing costs for the fifth time since June 2024. This decision comes as the region's economy shows signs of stagnation, with inflation approaching the target of 2%.
The ECB lowered the deposit rate by a quarter-point to 2.75%, aligning with predictions made by analysts in a Bloomberg poll. Despite this easing, officials maintain that their current monetary-policy stance remains 'restrictive,' indicating potential for further rate cuts in the future.