ECB Cuts Interest Rates by 25 Basis Points

Bank's Main Refinancing Rate Now at 4.25%

Move Aims to Stimulate Eurozone Economy

The European Central Bank (ECB) has announced a 25 basis point cut to its key interest rates, bringing the main refinancing rate down to 4.25%.

The move, which was widely expected by economists, is aimed at stimulating the eurozone economy, which has been facing headwinds from the war in Ukraine and the rising cost of living.

The ECB also announced that it will continue to reinvest the principal payments from maturing bonds under its asset purchase program, which is set to end in March 2023.

The interest rate cut is the first by the ECB since September 2019 and comes after the bank raised rates by 50 basis points in July.