The central bank cut rates by a quarter point, as it rushes to brace a stagnant economy against President Trump’s threatened tariffs.

The ECB (European Central Bank) continued policy normalisation today, with another 25 basis points (bps) worth of cuts across all three benchmark rates. This marks the fourth consecutive rate reduction, bringing the Deposit Facility Rate, the Refinancing Rate, and the Marginal Lending Facility Rate to 2.75%, 2.90%, and 3.15%, respectively.

Despite US President Donald Trump's sabre-rattling, the European Central Bank is set to press on with interest rate cuts Thursday as officials increasingly voice confidence that the fight against inflation is on track.

After lowering key rates in December, the ECB is widely expected to announce another 25 basis points (bps) cut, taking the benchmark rate on deposit facility from 3% to 2.75%. It would be the fourth straight interest rates cut after trimming them in September, October and December 2024.

European Central Bank President Christine Lagarde slapped down on Thursday a suggestion by her Czech colleague Ales Michl to include bitcoin among his country's official reserves.

EUROZONE government bond yields and the euro held steady on Thursday (Jan 30) after the European Central Bank (ECB) cut interest rates by 25 basis points to 2.75 per cent, as expected. Read more at The Business Times.

The ECB announcement will follow the Federal Reserve's decision to keep US borrowing costs on hold Wednesday as inflation.

The European Central Bank cut its interest rate for the fifth time since last summer and its expected to ease borrowing at least another three times this year as it tackles ongoing economic weakness in its largest economies.

EUR/USD shifted lower for a fourth consecutive trading day on Thursday, peaking near 1.0450 before softening to shed one-fifth of one percent on the day and ending just below the 1.0400 handle as the Euro’s near-term bull run draws to an end. A slate of German economic figures are due early Friday, followed by a key US inflation reading.

WASHINGTON – The American economy ended 2024 on a solid note with consumer spending continuing to drive growth. The Commerce Department reported Thursday that gross domestic product — the economy's output of goods and services — expanded at a 2.3% annual rate from October through December.