Gold prices plummeted Thursday, while key Wall Street indexes and global stocks plunged after the European Central Bank lowered interest rates for the fourth time this year.
European markets reduced their losses after the European Central Bank lowered interest rates and maintained the possibility of additional easing in 2025.
On Thursday, the European Central Bank lowered interest rates by a quarter of a percentage point, marking the fourth rate decrease this year.
As concerns over inflation mostly subside and the focus turns to whether the ECB is reducing rates quickly enough to help an economy that is trailing its international counterparts, the ECB has been loosening policy.
A prior pledge to maintain policy “sufficiently restrictive” was left out of the ECB’s previous policy statement, indicating a return to at least a neutral environment that neither accelerates nor decelerates growth.
On Thursday, the European Central Bank lowered its forecasts for the euro zone’s economic growth again and reaffirmed its assumption that inflation will stabilize at its target of 2%. For the past six months, the European Central Bank (ECB) has been gradually lowering interest rates to boost weak economic activity in many of the 20 nations that use the euro, most notably Germany, after seemingly calming once-rogue prices.
The Swiss National Bank lowered interest rates by half a percent, the biggest fall in almost a decade, which caused the Swiss currency to plummet. A significant possibility of a half-point cut was priced into the market.
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