*European Central Bank [ECB] Cuts Rates for the First Time Since 2019*
-The ECB reduced interest rates by 25 basis points to 3.75%, marking the first cut since 2019.
-Inflation in the euro area has decreased to *2.6% from over 10% in late 2022* due to *lower fuel costs* and easing supply chain issues.
*Updated Forecast:* The ECB forecasts inflation to average 2.2% in 2025, up from a previous estimate of 2.0%, remaining above the 2% target well into next year.
-The ECB lowered its deposit rate to 3.75% from a record-high 4.0%.
*Future Rate Path Uncertainty:* ECB President Christine Lagarde said - "no pre-commitment" to a specific rate path, noting that future adjustments will be depend on data.
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