The European Central Bank (ECB) is like a bank for other banks in Europe. They recently lowered their interest rates again! This means borrowing money will be a bit cheaper for businesses and people. This could help the economy grow.
- The ECB lowered interest rates to make borrowing money easier.
- This was probably the last easy decision for the ECB; future decisions might be harder.
- Germany's increased spending might cause prices to rise (inflation).
- Trade problems between countries could hurt the European economy.
| What happened | Number |
|---|---|
| Interest rate cut | 0.25% |
| New deposit rate for banks | 2.5% |
| New borrowing rate (weekly auction) | 2.65% |
| New borrowing rate (daily auction) | 2.90% |
