The European Central Bank (ECB) has reduced its three key policy rates by 25 basis points in line with market expectations. During the first governing council meeting of the year, the bank announced its monetary policy decisions. As a result, the deposit interest rate was lowered from 2.75% to 2.50%. The ECB also cut the refinancing rate and the marginal lending rate by 25 basis points each, bringing them to 2.65% and 2.90%, respectively. This marks the sixth cut since March 2016 for the refinancing rate and the marginal lending rate, and since September 2019 for the deposit interest rate in the second monetary policy meeting of the year. The ECB’s decision comes as growth in the Eurozone has been sluggish, following inflation close to the bank’s 2% target in February at 2.4%.