Markets

ECB Cuts Rates a Fourth Time as Euro-Area Growth Sputters

The Governing Council lowered the deposit facility rate to 2.75% and signaled further easing ahead as services inflation finally shows signs of rolling over.

By Carolynn Look·Apr 18, 2026·5 min read·1d ago

The European Central Bank cut its deposit rate by 25 basis points to 2.75%, its fourth reduction in seven months, as policymakers responded to a run of weak activity data out of Germany and France.

President Christine Lagarde said the disinflation process is “well on track,” and hinted that the central bank is prepared to move again at the June meeting if incoming data confirm the trajectory.

The euro slipped 0.4% against the dollar following the decision.

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