In an attempt to escape the euro zone’s longest recession in over 40 years, the ECB make a bold move, cutting interest rates to 0.50% from a previous standing of 0.75%.
It is the first time in 10 months that the ECB has cut rates. The rates cuts will go into effect on May 8th.
If this rate cut doesn’t bring about positive results in the Euro Zone, the ECB may feel like they are backed in a corner. Lowering their interest rates from here would likely bring them to 0.25% and from there, there is not much else they can do as far as interest rates are concerned.
The ECB will likely talk about the rate cut today at their ECB PRess Conference starting at 8:30am EST (New York Time)
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