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

Burnham to stick with fiscal rules as power set to flow out of Whitehall

Burnham to stick with fiscal rules as power set to flow out of Whitehall

First speech since PM bid

clock 29 June 2026 • 2 min read
BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

Geopolitics in the driving seat

Michael Nelson
clock 25 June 2026 • 2 min read
Advisers highlight uncertain political and fiscal future after Starmer resignation

Advisers highlight uncertain political and fiscal future after Starmer resignation

Prime minister’s exit places chancellor Rachel Reeves’ position ‘inevitably’ under scrutiny

Isabel Baxter
clock 22 June 2026 • 5 min read