The European Central Bank (ECB) lowered its interest rates in the eurozone by a quarter of a percentage point on Thursday. It explained that in view of the decline in inflation in recent months, "appropriate" conditions for a moderate monetary policy were in place.

From 12 June, the refinancing rate for banks will be 4.25% and the interest rate for overnight deposit will be 3.75%.

According to the ECB’s statement, commercial banks will pay an interest rate of 4.5% for overnight loans.

From July 2022 to September 2023, the ECB raised interest rates by 4.5 percentage points and then halted them amid weaker economic activity, lower lending and milder price increases.

The Governing Council concluded that “appropriate” conditions for easing monetary policy had been created based on updated inflation forecasts.

It added that the inflation rate has fallen by more than 2.5 percentage points since September last year, with the outlook improving significantly, and that curbing demand and controlling inflation expectations have played an important role in easing inflation.