The European Central Bank decided in its meeting moments ago today, Thursday, December 12, to cut interest rates as expected by 25 basis points to reach 3.15% in the fourth cut this year after the start of the cut in June.

The bank’s interest statement stated that most key inflation measures indicate that inflation is on the right track and that headline inflation is expected to average 2.4% this year, 2.1% next year and 1.9% in 2026, while the council now expects a slower economic recovery than it expected in September, as the economy is expected to grow by 0.7% this year, 1.1% next year and 1.4% in 2026.

The European Central Bank is determined to ensure that inflation remains stable at the 2% target and will follow a data-driven approach and will depend on each meeting alone to determine the appropriate monetary policy stance.