ECB's Strategic Rate Cuts Amid Eurozone's Inflation Dip

The European Central Bank has reduced interest rates from 3.5% to 3.25%, its third cut since June, amid falling inflation and slow economic growth in the eurozone. This decision underscores optimism about inflation trends, which fell to 1.8% in September, and potential future rate reductions.

On Thursday, the European Central Bank made headlines by lowering interest rates for the countries using the euro currency. This decision is in response to a significant drop in inflation, which has hit its lowest point in over three years, and the economy's sluggish growth.

The bank's latest meeting, held in Ljubljana, Slovenia, resulted in a reduction of the benchmark rate from 3.5% to 3.25%. This marks the third rate cut since June, reflecting confidence among ECB policymakers about inflation's downward trajectory.

The inflation rate fell to 1.8% in September, slipping below the ECB's 2% target for the first time in three years. Economic growth in the eurozone remains minimal, at just 0.3% in the second quarter. Analysts predict further rate cuts, driven by prevailing economic and inflationary trends.

(With inputs from agencies.)