European Central Bank Cuts Interest Rates as Eurozone Economy Stalls

With the eurozone economy flatlining, the ECB cut interest rates and signaled that its rate-cutting cycle will likely continue.

European Central Bank President Christine Lagarde addresses a press conference at the central bank's headquarters in Frankfurt am Main, Germany, on Jan. 30, 2025. Kirill Kudryavtsev/AFP/Getty Images

The European Central Bank (ECB) lowered interest rates on Thursday and hinted more cuts are likely coming, signaling it’s prioritizing actions that address sluggish economic growth over concerns about lingering inflation.

The ECB delivered a 25-basis-points cut on Jan. 30, bringing its key deposit facility rate to 2.75 percent. The move marks the ECB’s fifth rate cut since June, with markets expecting two or three more this year amid growing confidence that inflation is continuing to cool and economic weakness demands action.