The European Central Bank (ECB) has cut interest rates for the second time in three months in a bid to boost the eurozone’s fragile economic recovery.
The ECB has cut its main rate, which is used as a benchmark for consumer borrowing, from 0.15% to 0.05%. The rate was cut from 0.25% in June.
After entering unchartered territory by introducing a negative deposit rate in June, the ECB has now raised the amount it will effectively charge banks to park their money with it. The deposit rate has been cut from -0.1% to -0.2%. Rates on the ECB’s marginal lending facility have meanwhile been cut from 0.4% to 0.3%. That rate was cut from 0.75% in June.