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MNI BRIEF: ECB Cuts Rates, Scraps Restrictive Pledge

ECB cuts deposit rate by 25BP to 3% and says policy will be "appropriate".

MNI (LONDON) -  The European Central Bank cuts its three key interest rates by 25 basis points on Thursday, sending the benchmark Deposit Rate to 3.0%, the lowest in over two years.  (See MNI ECB WATCH: ECB To Cut, Likely To Change Language )

The Governing Council said it is "determined to ensure that inflation stabilises sustainably at its 2% medium-term target. It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance.” It dropped a previous commitment to “keep policy rates sufficiently restrictive for as long as necessary” to achieve its inflation target. (see MNI SOURCES: ECB Closer To Dropping "Restrictive" Language)

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MNI (LONDON) -  The European Central Bank cuts its three key interest rates by 25 basis points on Thursday, sending the benchmark Deposit Rate to 3.0%, the lowest in over two years.  (See MNI ECB WATCH: ECB To Cut, Likely To Change Language )

The Governing Council said it is "determined to ensure that inflation stabilises sustainably at its 2% medium-term target. It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance.” It dropped a previous commitment to “keep policy rates sufficiently restrictive for as long as necessary” to achieve its inflation target. (see MNI SOURCES: ECB Closer To Dropping "Restrictive" Language)

Keep reading...Show less