The ECB has once again lowered key interest rates due to a decrease in inflation.

The European Central Bank (ECB) lowered all three key interest rates by 25 basis points (bps) again on January 30 of this year.

This is mentioned in a statement from the regulator.

The deposit rate now stands at 2.75%, the main refinancing operations rate is 2.90%, and the marginal lending rate is 3.15%.

The ECB's decision is based on an updated assessment of inflation dynamics, indicating a successful reduction in inflation. 

It is noted that the disinflation process is on the right track. Inflation continues to evolve in line with staff forecasts and is expected to return to the medium-term target of 2% set by the Governing Council within this year. Most core inflation indicators suggest that inflation will remain steadily around the target level.

The Governing Council is prepared to adjust all its instruments within its mandate to ensure a sustainable stabilization of inflation at the 2% target in the medium term and to maintain the smooth functioning of the monetary policy transmission.

Background. Previously, Mind reported that the ECB had lowered rates for the third consecutive time amid declining inflation in the Eurozone. The deposit, main refinancing, and marginal lending rates will be 3.25%, 3.40%, and 3.65%, respectively.