Urgent.. The European Central Bank cuts interest rates for the third time this year.

After the conclusion of the Monetary Policy Committee meeting on Thursday, the European Central Bank decided to lower interest rates at a pace that aligned with market expectations, by 25 basis points, bringing the main refinancing operations rate to 3.40%, after the bank had previously decided to reduce the main interest rates in the eurozone at the last meeting to the level of 3.65%. It also lowered the deposit rate by 25 basis points to 3.25%.

A monetary policy statement from the European Central Bank is scheduled to be released shortly, providing more detailed clarifications regarding the economic situation in the eurozone. This statement will be followed by a press conference from the ECB Governor, Christine Lagarde, to comment on the interest rate decision and the monetary policy statement, within less than 30 minutes from now.

Short-term interest rates are considered the primary factor affecting the value of the currency, as investors await other indicators to predict potential changes in interest rates in the future, especially since the main goal of the monetary policy followed by the European Central Bank focuses on achieving price stability. If the ECB’s inflation expectations are positive and interest rates are raised, it is considered favorable for the euro, while a rate cut is viewed negatively for the euro currency.