ECB cuts rates to new low

clock

The European Central Bank has cut benchmark interest rates to a new historic low of 0.15% as it acts to stimulate economic growth and stave off another downturn.

In a series of moves, it has also cut the deposit rate from zero to -0.1%, effectively meaning it will now cost banks interest to deposit money with the ECB. The rate on the marginal lending facility will be decreased by 35bps to 0.40% Speculation the bank would act in June was fuelled after ECB president Mario Draghi (pictured) said last month it was "comfortable" with the idea of cutting rates after becoming alarmed at the strength of the euro. The currency, which hit a two-and-a-half-year high against the dollar last month, had become an increasing source of frustration for expo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Partner Insight: Tariffs are here to stay. What's next for investors?

Partner Insight: Tariffs are here to stay. What's next for investors?

The current outlook for US tariffs is complex and their full impact on growth remains to be seen. Columbia Threadneedle Investments explores what advisers need to know, key events to keep top of mind and how to navigate the uncertainty.

Columbia Threadneedle Investments
clock 23 October 2025 • 5 min read
IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

Think tank urges chancellor to avoid 'limping from one forecast to the next'

Linus Uhlig
clock 16 October 2025 • 2 min read
Why higher bond yields aren't causing a Mini-Budget meltdown

Why higher bond yields aren't causing a Mini-Budget meltdown

'One thing we know about Rachel Reeves is she will live or die by her fiscal rules'

Laith Khalaf
clock 07 October 2025 • 5 min read