-
ECB to start cutting rates from record highs
The European Central Bank is expected to start cutting interest rates from record highs Thursday, its first reduction in nearly five years, but volatile inflation means the path ahead is uncertain. After an unprecedented streak of eurozone rate hikes beginning in mid-2022 to tame runaway energy and food costs, inflation has been slowly coming down towards the ECB’s two-percent target. Rates have been on hold since October, but it is a near certainty the central bank will reduce borrowing costs by a quarter percentage point Thursday, taking its key deposit rate to 3.75 percent. It will provide a much-needed boost ... (full story)