ECB cuts rates for the fourth time since June

This comes amid easing inflation, worsening growth outlook, euro zone political turmoil

FRANKFURT - The European Central Bank (ECB) cut interest rates again on Dec 12, citing a worsening growth outlook and slowing inflation, with political turmoil in the euro zone adding to the troubled picture.

The central bank for the 20 countries that use the euro reduced its key deposit rate a quarter point to 3 per cent, as widely expected.

It was the ECB's third cut in a row and fourth since June, when it kicked off its current easing cycle.

After hiking borrowing costs from mid-2022 to combat energy and food costs, policymakers have turned their attention to lowering rates as inflation eases and the euro zone economic outlook darkens.

Worse-than-expected data, as well as the Swiss central bank making an unexpectedly large rate reduction earlier on Dec 12, had fuelled speculation the ECB could deliver a hefty, half-percentage-point cut for the first time in the easing cycle.

But rate-setters opted to continue cutting at the same pace, with a quarter-point reduction, as inflation remains stubborn, having rebounded back above the ECB's 2 per cent target in November.