06.03.2025 16:51
After the Central Bank of Turkey announced its interest rate decision, all eyes turned to the European Central Bank (ECB), which also made its decision regarding interest rates. In line with market expectations, the ECB reduced its three key policy interest rates by 25 basis points.
The common currency of Europe, the Euro, gained strength in global markets while the European Central Bank (ECB) made a move on interest rates. Faced with twin shocks stemming from Trump's threats of tariffs and the sudden need to radically increase military spending, the region's stagnant economy lowered interest rates to support growth.
INTEREST RATE CUTS CONTINUE
The ECB reduced the key interest rate from 2.75% to 2.5%. This move widened the gap between the Fed and benchmark borrowing costs. The ECB implemented its sixth interest rate cut in the last seven meetings.