Deposit rate slashed to 2.75%, its lowest since early 2023.

The European Central Bank (ECB) on Thursday trimmed its three key interest rates by 25 basis points, meeting market forecast.

This marked the fifth consecutive rate cut since the ECB initiated its easing cycle last June.

The key deposit rate now stands at 2.75%, its lowest level since early 2023.

The interest rates on the main refinancing operations, and the marginal lending facility was cut to 2.90%, and 3.15% respectively.

This decision came just a day after the US Federal Reserve held its benchmark policy rate steady at 4.25%-4.5%.

The euro area annual consumer inflation rate for December rose to 5-month high of 2.4%, from 2.2% in November.

Core inflation, which excludes volatile food and energy prices, remained stable for the fourth consecutive month at 2.7%.

The euro area’s GDP in the fourth quarter of 2024 unexpectedly remained stable, following a 0.4% growth in the previous quarter, according to flash estimates.