CORRECTS - European Central Bank cuts rates by 25 basis points, in line with estimates

CHANGING WORD "FIFTH" TO "SIXTH" IN SECOND PARAGRAPH

By Mucahithan Avcioglu

ISTANBUL (AA) - The European Central Bank (ECB) on Thursday lowered its three key interest rates by 25 basis points, meeting market forecasts.

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

The key deposit rate now stands at 2.50%, its lowest level since early 2023.

The interest rates on the main refinancing operations and the marginal lending facility were cut to 2.65% and 2.90%, respectively.

Preliminary estimates by Eurostat for the eurozone annual consumer inflation rate were at 2.4% in February.

Core inflation, which excludes volatile food and energy prices, eased to 2.4% in February from January's 2.5%, according to preliminary estimates.

The euro area’s GDP in the fourth quarter of 2024 grew 0.1%, following a 0.4% growth in the previous quarter.

The annual inflation in the EU's first and second biggest economies, Germany and France, eased in February, with France's rate hitting a four-year low.

These slowdowns in inflation also bolstered the ECB's rate-cut decision.

The rate cut came after the US imposed tariffs on Canada, Mexico and China, and also on all global imports of some products.