BCE reduces interest rates by 0.25 percentage points.

Another interest rate cut: Where are they at?

The European Central Bank (ECB) has decided to reduce interest rates by 0.25 percentage points, as "inflation is gradually falling and has evolved as expected," the entity's website states. "Our future decisions will depend on the evolution of the economy and inflation," it adds.

Therefore, the interest rates are now at the following values: the deposit facility rate at 3.5% (previously 3.75%), and the interest rates of the main refinancing operations and the marginal lending facility rate at 3.90% (previously 3.65%).

"The economy presented itself weaker than we expected. The situation in the industry and construction is not good. People are spending less and companies are cutting investments, but it should recover gradually," points out the ECB. 

The entity also explains that it is the services that are now driving the economy. This means that the increase in wages and the decrease in inflation will allow people to buy more in the future - which, together with lower interest rates, will help the economy.  

The decision was made based on the decrease in inflation, but it may rise in the coming months due to energy prices. "It continues, however, on track to reach 2% in the second half of next year," predicts the ECB.  

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