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Investing.com -- The European Central Bank (ECB) has once again reduced interest rates, marking the sixth time in the past nine months that it has done so. This move was made on Thursday in line with the ECB’s plan to alleviate the economic impacts of the ongoing trade conflict and new proposals to increase military spending in Europe.
The ECB, which serves as the central bank for the euro zone, has adjusted the rate it pays on bank deposits, reducing it by 25 basis points to 2.5%. This rate is considered to be "meaningfully less restrictive", especially as inflation approaches its 2% target.
The ECB stated that this move towards a less restrictive monetary policy is aimed at making new borrowing cheaper for firms and households. Additionally, it noted that loan growth is on the rise. This interest rate cut is part of the bank’s ongoing efforts to stimulate the European economy amidst international trade tensions and increased military expenditure plans.
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