European Central Bank Lowers Rates as Inflation Nears 2% with Weak Growth

The European Central Bank has reduced interest rates by a quarter of a percent to 2.75%, representing its fourth consecutive cut since June 2022. Despite a decrease from a peak of 10.6% in October 2022, inflation in the Eurozone remains above the target at 2.4%. ECB President Christine Lagarde mentioned that the economy is anticipated to face challenges in recovering after stagnating at the end of 2024. Lagarde also highlighted that the Eurozone's economy has stagnated, with Germany witnessing two consecutive years of declining output.