The European Central Bank cut key interest rates by 25 basis points, as expected on Thursday, as policymakers assessed that the disinflation process is on track, and but they are increasingly concerned over the health of the euro area economy following some soft data released since the September policy session. The Governing Council, led by ECB President Christine Lagarde, lowered the deposit facility rate by a quarter basis point to 3.25 percent following the rate-setting session held in Ljubljana, the capital of Slovenia.
"…the decision to lower the deposit facility rate - the rate through which the Governing Council steers the monetary policy stance - is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission," the ECB said.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.