European Central Bank Cuts Interest Rates, Lowers Growth Forecast

The European Central Bank cut interest rates, citing lower inflation and slowing economic growth, signaling a cautious monetary-easing approach.

European Central Bank (ECB) President Christine Lagarde addresses a press conference on the Eurozone's monetary policy, at the central bank's headquarters in Frankfurt am Main, western Germany, on Sept. 12, 2024. Daniel Roland/AFP via Getty Images

Policymakers at the European Central Bank (ECB) have cut interest rates, citing lower inflation and slowing economic growth as factors behind their decision to loosen monetary settings.

The ECB’s governing council voted on Sept. 12 to lower the benchmark interest rate—known as the deposit facility rate—by 25 basis points, or a quarter of a percentage point.