ECB cut the rate by 25 basis points | Jan. 2025

Headline inflation has risen to 2.4% over the last three months, but overall economic growth stalled in the last quarter of 2024, raising concerns of stagflation. The ECB cut the deposit rate to 2.75%, the main refinancing rate to 2.9%, and the marginal lending rate to 3.15%. In 2024, the ECB lowered borrowing costs four times to address weak economic activity and signs that high inflation rates were easing.