European Central Bank Cuts Interest Rates for the Fourth Time This Year

On December 13, according to China Economic Net, the European Central Bank (ECB) announced a 25-basis-point reduction in its three key interest rates. The deposit facility rate was lowered to 3%, the main refinancing rate to 3.15%, and the marginal lending rate to 3.4%. The ECB also projected a total rate cut of 127 basis points for the coming year. The primary reasons behind these decisions include the ongoing economic downturn in the Eurozone, weak manufacturing activity, and slowing growth in the services sector, indicating downside risks to the Eurozone economy.