The European Central Bank (ECB) has cut interest rates for the first time since late 2015, interrupting a series of ten consecutive increases that had raised the price of money to its highest level in more than two decades. This decision, with a lower by 25 basis points, comes after four consecutive meetings in which the central bank held interest rates steady.
In a statement, the ECB said: "On the basis of an updated assessment of the inflation outlook, the dynamics of underlying inflation and the intensity of monetary policy transmission, it is now appropriate to moderate the degree of monetary policy tightening after nine months in which interest rates have remained unchanged".
The current macroeconomic backdrop includes a year-on-year inflation rate in the eurozone of 2.6% in May, up two percentage points from the previous month. Excluding the impact of energy, food, alcohol and tobacco, the underlying inflation rate also increased by two percentage points to 2.9%.
In addition, Eurostat confirmed in May that the eurozone's Gross Domestic Product (GDP) avoided entering recession during the first quarter of the year, registering an expansion of 0.3%. This figure contrasts with the 0.1% decline observed in the last three months of 2023.