European Central Bank announces first interest rate cut in five years to 3.5%

The European Central Bank (ECB) has announced a reduction in interest rates by 0.25 percentage points to 3.5%, marking the first cut since June and the first in five years.

Johnny í Grótinum, chair of the Economic Council, has indicated that more interest rate cuts are expected both this year and next year.

The recent decision reflects ongoing economic challenges and is aimed at stimulating growth within the Eurozone. The ECB’s strategy of lowering interest rates is part of a broader effort to support the economy amidst fluctuating inflation rates and other financial pressures impacting consumers and businesses alike.

For further insights and analysis, listeners can tune into an interview with Johnny í Grótinum featured in the radio news broadcast.