ECB Interest Rate Cut to Support Economic Growth
October 18, 2024
The recent decision by the European Central Bank to lower interest rates by 0.25% aims to boost growth and prevent recession in the Eurozone. President Lagarde admitted that economic activity is weaker than expected, with decreased investments and consumption. Although inflationary pressures have eased, concerns about overall growth have emerged as a primary concern. Households have maintained high savings rates, contributing to a slowdown in consumption.